Renting or buying? Income protection fit for the future
Whether customers are renting or have bought their home using a mortgage, keeping a roof over their heads is likely to be a top priority. At Aviva we develop our income protection products to be suitable for our customers over the long term, with the flexibility to adapt to key life changes.
Fit for the future
Flexibility and portability are key customer benefits of our three income protection products. This month we’ve improved the built-in flexibility of our Life Change Benefit options to ensure that both tenants and those with mortgages can increase their benefit if their monthly rent or mortgage payments increase.
From 28 June, customers with full term Income Protection+, 2-year benefit Income Protection+ and Living Costs Protection can easily increase their cover, if they’re on standard terms, without the need for further underwriting, if:
- There is an increase in rental payments imposed by the landlord, or
- There is an increase in rental payments due to a move to another rented property, or
- There is a move from rented to mortgaged accommodation.
These changes only apply to Income Protection+ and Living Costs Protection policies taken out from 28 June 2020. It’s worth remembering that the policy must have been on risk for 6 months before the Life Change Benefit option can be used.
The tenant protection opportunity
There are over 8.6m rental households in the UK* and only 2% of renters having any income protection in place**, The Protecting generation rent report published by Hymans Robertson in September 2019 states that renters are keen to engage with someone regarding how they can cover their rent if they are ill. This tenant protection market offers a huge opportunity to advisers, and our range of income protection products offer the flexibility and affordability options tenants may need.
Support for advisers
Rental sector customers may not have the same established adviser relationships as homeowners, so to help advisers rise to this challenge we have a full range of marketing support materials available on our Tenant Protection hub. Offering tips on how to identify and engage with prospective tenant customers, a customer video and sales aids that reinforce the value of putting protection in place when renting, we’re providing the support you need to tap into the tenant protection opportunity.
*English Housing Survey 2018-19 Headline Report, ONS (Contains public sector information licensed under the Open Government Licence v3)
**FCA Financial Lives Survey 2017.