L&C Mortgages has added its voice to the call for the protection industry to introduce annual statements.
It follows exclusive research from L&C highlighting that 95% of customers would be interested in receiving a yearly statement, detailing the cover they currently hold, together with details of the additional benefits that accompany their policy.
The lack of communication about policy benefits is highlighted further with 76% of customers stating that they would like to receive details of the free services available as part of their policies, as well as direction on how to claim them.
Together with the industry, L&C is seeking to change the current attitude towards life insurance, income protection and critical illness cover, to ensure people understand the value of these policies and their additional benefits. Following changes within the protection market many providers have introduced services such as free medical and tax helplines that customers can use without making a claim.
Lucy Brown, head of protection at L&C said: “Currently, the benefits available to customers are clearly laid out in the policy information when cover is taken – but we don’t think this is enough. Quite often life insurance or critical illness cover is taken out alongside a mortgage, one of the largest financial decisions people make in their lifetime. Although customers appreciate the importance of the cover and its additional benefits, such as free second medical opinions, at the time, there is understandably a tendency for customers to then file away their policy and forget all about it.
“An annual statement detailing the type and level of cover, how to make a claim and the additional benefits available to customers, will go a long way to underlining the value of protection. Although some protection providers have already implemented this approach, some of the larger players are yet to join them. As a protection adviser L&C wants customers to be able to take full advantage of the great benefits that are available, and encourage them to make the most of what they have in place.”
L&C’s research also found that 68% customers would like to make their information even more easily accessible, and would be keen to receive a plastic card to fit in their wallet, detailing their life insurance cover and relevant contact telephone numbers.