ABI guidelines for selling protection online and by phone

Commenting on ABI guidelines for consumers who take out protection insurance online or by phone, Emma Walker, head of protection at price comparison website moneysupermarket.com, said: “Arranging to buy protection online or by phone provides a great deal of flexibility and ease for the consumer. While it is becoming a preferred route for customers, the ABI’s initiative is a step in the right direction to help enhance consumer understanding and build awareness in this area.

“With non-disclosure or a claim not meeting the policy definition being the main reasons for claims being declined, some consumers may feel insurance providers will use any loophole to refuse payouts. This is why intermediaries need to be as clear as possible about policy details at point of sale and consumers need to read the small print and compare as many policies as possible for both value and cover provided.

“Trying to understand the different types of protection products in the market is not easy and intermediaries should ensure they tailor their advice to each customer’s circumstances. This way, the customer is more likely to understand what type of insurance they are buying and, more importantly, why.”

moneysupermarket.com has the following tips when looking for protection:

Speak to an adviser who can highlight the most appropriate policies for your individual circumstances.

Don’t always be lured by the lowest priced premium. Look at policy coverage and extras within the cover to make sure you are getting the best value for money.

Make sure your answers are correct and give all of your relevant personal information and medical history, or a subsequent claim might be rejected.

Always review cover at life changing events such as a change of job, having children, a change in marital status, increased debt or moving house.

When replacing a policy, always seek advice and compare like for like, as the premium may be cheaper but the coverage might not be as comprehensive. Never cancel anything until the new cover is in place.

If the premium is too big for your budget, consider getting some initial critical illness cover that you can add to later.

View income protection, critical illness, life insurance, private medical insurance and mortgage payment protection insurance as a basket of goods – choose the most relevant for you at any given moment.