Legal & General celebrates Family and Personal Income Plan

Legal & General launched its Family and Personal Income Plan (FPIP) seven years ago, and in that time over 73,000 families have been covered.

FPIP is designed to provide a monthly income for a set period of time in the event of death or critical illness of the policy holder. Historically, family protection has not been given as high a priority as mortgage protection but Legal & General is urging advisers to ensure that their clients give serious consideration to it, especially in the light of recent increases in the cost of living.

Bonnie Burns, Protection Product Marketing Director said: "It's well documented that people in general are under-insured. Those that do take out protection tend to focus on mortgage term assurance but anyone with a family should be aware that paying off a mortgage is not normally enough. Advisers need to help their clients understand that family outgoings comprise much more than just mortgage payments. With the fall in the mortgage market this year, advisers need to be savvy about boosting their revenue and family protection is an obvious place to start."

Legal & General has recently produced a new support pack for advisers to help them sell more family protection. It includes:

An adviser guide - outlining current market conditions, state benefits, client lifestyles, upselling mistakes and solutions, as well as tips on selling themselves and handling objections.
First client flyer, ‘The importance of having life cover' - helping clients to consider the importance of protecting their loved ones and relating the cost of protection to every day expenses
Second client flyer, ‘Help protect your lifestyle' - helps bring to life how much cover is really needed to protect client's current lifestyle.

An example household budget could be:

Mortgage £600
Council tax £100
Utilities £90
Child care £530
Telephone £30
Mobile £60
Car expenses £80
Food £350
Day to day £300
Insurances £60
TOTAL = £2,200

It would cost just £18.73 a month to cover a 35 year old, female non-smoker for a monthly income of £2,200*

* 25 year term with optional waiver of premium benefit. Assumes policyholder is healthy.