05 SPRING PROTECT NEWSLETTER Continued on next page... The graph below shows that pricing for ‘Life Cover’ is generally on the decline. When we look at base levels in 2023 prices are around 7.5% for Level Term: You may have seen them pop-up more on Solution Builder recently. This is because they have broadened their scope in the life market, reduced minimum premiums, and added a more than generous multi-product discount. When you look at the quality of their Income Protection product it is well worth looking at carefully, especially if your multi–product quotation is close to more established Providers. One other mention I should make is for the continued improvements to those Providers who offer alternatives to those who, for one reason or another, cannot get “traditional” levels of cover due to underwriting. National Friendly highlighted their product to me earlier in the month – Friendly Shield. There are no medical questions, which is one of the perks of this cover, and as long as policy holders work 16 hours per week they can obtain a range of benefits payable due to injuries and sickness. Smoking status does not affect the cost, nor does occupation. They will ask for occupation and salary on the application form, to ensure it is not one of the few occupations they exclude. A real champion for those who need access to some sort of cover! Broadening the requirement - IHT As we are now more than familiar with the Autumn budget and its implications, we know that there are proposed significant changes to Inheritance Tax (IHT) regulations, aiming to increase tax revenues and address perceived inequities in to the system (allegedly). Here's an overview of the key changes and their potential impacts: 1. Freezing of the Nil-Rate Bands • Current Thresholds: The standard nilrate band remains at £325,000, and the residence nil-rate band at £175,000. • Extension: These thresholds, previously fixed until April 2028, are now extended until April 2030. During the heady days of the pandemic I used to Google life assurance to see what consumers were looking at… Life Cover searches rose dramatically but then dropped again, and now have remained pretty consistent. However, we have recently seen an increase in Income Protection quotes on Google (see below) we then need to look at what customers mean by that term. Often, they may mean Unemployment Cover (we do make our terms complicated in this industry don’t we?). So, we are looking at some potential solutions so please “watch this space” or at least our website for updates. Talking of Income Protection, one of the biggest independent Providers of that product for us has been The Exeter.
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