A Guide to Short Term Income Protection

by Ben Heffer
Insight Analyst - Life & Protection

September 2011

This guide highlights the new opportunities within the short term income protection (STIP) market and outlines how advisers can raise consumer awareness of this product.

In the wake of the payment protection insurance (PPI) mis-selling scandal, advisers are well placed to take advantage of the greater number of short term income protection (STIP) products that have recently become available to consumers.

Product developments in the creditor space demonstrate that there has been a decline in the traditional PPI products; a change likely driven by a lack of consumer confidence in PPI and the need of business to distance itself from such products.

However, with people still conscious of the need to protect themselves and their property against a loss of income, the market for mortgage payment protection insurance (MPPI) remains buoyant. The potential to up-sell from MPPI to STIP is therefore a very real prospect for advisers, given the greater flexibility these products can offer.

Our guide to short term income protection can help you navigate the many STIP products available by providing a wealth of information on the issues surrounding this market.

Information contained within the guide includes:

  • Contextualised explanations of the differences and similarities between short term income protection, long term income protection and MPPI
  • An analysis of the industry influences driving the increase in STIP products available
  • Detailed breakdowns of the various features of STIP products including cover options, benefit period options, comparative costings, cover eligibility and rider benefits
  • An examination of the opportunities and challenges for advisers
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