The number of short-term income protection (STIP) products available to consumers has almost doubled in the last 24 months, in spite of the huge amounts of negative publicity around Payment Protection Insurance (PPI).
Research by a financial services industry analyst published this week, suggests that the number of STIP products on the market has risen from 20 in 2009 to 39 in 2011. In spite of the negative publicity around PPI, current conditions present increased opportunity for brokers selling STIP, including the opportunity to up-sell from Mortgage Payment Protection Insurance to STIP.
That is in spite of the fact that PPI providers are having to pay out billions of pounds to settle consumer complaints in the wake of an investigation by the Competition Commission.
Providers of STIP insist their products are fundamentally different from PPI, both in their make-up and the way they are sold. Last year an industry body set up to promote income protection issued proposals for a kitemark system that would help consumers to distinguish between PPI and STIP. In the wake of the PPI scandal, financial advisers are “well placed” to assist consumers by raising awareness of the need for protection and sourcing a package that is right for them.
Increased shopping around by consumers following the PPI scandal is generating internet-based leads and creating opportunities to purchase STIP leads. While brokers selling STIP should be aware of its “limitations”, it should at least be considered alongside other protection products to offer truly comprehensive cover.
Sally Bowyer, Managing Director of financial claims specialist BrunelFranklin.com says that the public are slowly becoming wiser to the tactics of mis-selling, but that a lot of the damage is already done: “It is important to realise that we may all unwittingly have taken out PPI during the years when lenders were offering a seemingly endless line of credit in the form of loans and credit cards in particular. It costs nothing to check your paperwork for insurances that you may not even know you are paying for.”
“PPI per se is not a bad product, however the onus is on the vendor to ensure the product is the best for your needs at the time of sale. If the best product for your needs was not offered, or if you were unaware of the true cost, for example, you may have grounds for a refund.”
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.