Financial adviser survey reveals limitations of traditional MPPI
A new survey by protection specialist LV= reveals that over half of advisers (53%) believe that the biggest limitation of traditional MPPI is that benefits are only paid for a maximum of 12 or 24 months. Despite this finding, half of mortgage advisers (50%) will continue to recommend MPPI or a similar protection cover to all of their clients, where possible.The research also found that almost one quarter of advisers (23%) are concerned about the ‘one size fits all approach' of traditional MPPI.
Chris McFarlane, Head of Protection at LV= said: "Our research shows that despite having serious concerns about the limitations of traditional MPPI, half (50%) of financial advisers will continue to recommend a MPPI product to all their clients. In the current economic climate the need for protecting mortgage repayments in the case of an accident, long-term illness or unemployment is more important than ever.
The LV= Mortgage & Lifestyle Protection product is a comprehensive long term disability cover that can fully protect clients' mortgage payments and also additional living expenses if they so choose. LV= has used its specialist income protection and tele-interviewing expertise to create a product that's easier for clients to understand, and can pay out right up until the end of the plan term. For the adviser, there is a simple process, with easy quote completion and helpful web-based literature and training.
McFarlane continues: "Our new Mortgage & Lifestyle Protection product offers superb cover and true peace of mind for advisers and their clients. We pay the medical costs and offer market leading pre and post claim services. Now is the time that advisers should be looking to review their usual choice of both MPPI products and providers, and look to our revolutionary Mortgage & Lifestyle Protection product as a solution. Our product is affordable and flexible - we believe that it really is a better choice for advisers to be recommending to their clients."