UK - Life cover, critical illness and income protection insurance sales will be boosted by the move to money purchase schemes, a leading employee benefits provider claims.
Lane Clark & Peacock says the switch to DC plans – where benefits can only be purchased from a member’s individual account – means insurance is needed to give extra protection.
And senior consultant Carlos Correia believes this will boost the need for life assurance, income protection and critical illness insurance.
He said: “These benefits can take various forms depending upon an employer’s circumstances and requirements.
“Typically for disability benefits, income protection has been seen to be the best solution. However, the popularity of critical illness in the personal protection market may stimulate the demand for critical illness insurance as a corporate benefit.”
He added: “It is reasonable to expect an increase in sales of these products in the future given the move from DB to DC.”
Correia said that to date critical illness had tended only to feature as an executive benefit or as part of a flexible benefit arrangement.
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