05 AUTUMN PROTECT NEWSLETTER Continued on next page... the six months to September 2024, when tax-free cash rumours were rife, 99,243 drawdown pots were accessed for tax-free cash (up from 84,132 in the previous six months). This figure then increased to 111,878 in the six months to March. These figures present a clear opportunity to engage clients in conversations around mitigating liability—whether through Life Products, gifting strategies, or Trusts. Under Consumer Duty, advisers have a responsibility to “avoid foreseeable harm.” With Claims Management Companies likely to scrutinise adviser actions in this space, proactive communication is key. Mortgage Brokers, too, are well-positioned to estimate estate values through their Fact Finds, making IHT planning more accessible than ever. The process may seem daunting, but in reality, it’s often simpler than expected. And don’t overlook the chance to discuss Frailty and Dementia Care—currently with just one mainstream provider offering a solution, it’s a niche but important area to explore with clients. Unemployment Cover In our previous Newsletter, we touched on the growing demand for Unemployment Cover amid the ongoing economic uncertainty. At the time, we mentioned that we had sourced a supplier to support you in this area. We’re pleased to share that Paymentshield has now extended their offering to include Accident, Sickness and Unemployment (ASU) cover—reinstating the option they provided pre-Covid. It can cover Accident and sickness or AS and Unemployment. There is no exclusion period, no Medical Underwriting and no loadings for lifestyle. Cover is available for self-employed and fixed term contracts, as long as it is written to cover a Mortgage they offer £3,000 per month or 75% of client Income. This makes it a great time to revisit their General Insurance (GI) proposition and explore the ASU cover available alongside it. General Insurance (GI) Buy-To-Let (B2L) GI isn’t often talked about, but with rising rental voids and arrears it is becoming increasingly important to look at how Insurance can support Landlords, especially in light of the upcoming Rental Reform Bill. As tenancies shift to become periodic, (month-to-month) instead of fixed-term, tenants will be able to give notice at any time. Rental voids are likely to increase further, reducing the certainty of a guaranteed rental income for landlords. In GI World it is hardly a surprise that BTL conversations are gaining momentum, and education around BTL and Landlord specific products like Rent Guarantee is trending. In addition we have seen Providers such as The Source and Paymentshield expanding their residential panels by adding new Insurers – helping them offer competitive premiums. Workplace absence and Income Protection In this edition L&G discuss the merits of Critical Illness v Income Protection and mention risk reality calculators to help quantify the likelihood of absence from work. Supporting this recent research shows that workplace absence levels in the UK have increased in the past year as more working adults face long-term health conditions. According to a survey of more than 1,100 employers: • UK employees were off sick for nearly two full working weeks (9.4 days) on average in the last 12 months, • Up from 2023 (7.8 days) and preCovid-19 levels (5.8 days).
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