Guardian has started started to issue its first annual policyholder emails as it experiences a “strong” appetite for income protection.
The emails were sent in line in with the commitment made by the challenger brand upon launch of its first income protection product a year ago. Every Guardian policyholder across all cover types is to receive this email communication from Guardian shortly before their policy anniversary.
The email prompts policyholders to check their cover by logging into their MyGuardian account and encourages them to speak to their financial adviser if circumstances have changed in the last year such as moving house, changing job, getting married or having a baby.
It reminds them that this is particularly important if they have income protection and their annual earnings have reduced since their cover started. It also highlights that any claim they make will be calculated on their annual earnings at the point they make the claim, not when they took the cover out.
Guardian revealed the commitment was made in response to adviser feedback, adding it hopes its annual policyholder emails will help advisers to have these important protection conversations.
Guardian also shared some data about its income protection in force business.
Within Guardian, 44% of its income protection business has been full-term and 56% short-term.
For clients purchasing full term cover, the figures show that clients are more likely to opt for the additional peace of mind of increasing cover, presumably to keep up with expected pay increases.
For those opting for short term cover, they are slightly more likely to choose level cover, presumably because their priority is to keep prices lower.
But Guardian’s figures also show there is strong appetite for income protection bought as part of a menu, with 52% of the firm’s income protection policies bought alongside other products.
Rachael Welsh, head of marketing at Guardian, (pictured) said: “We’re delighted to mark the one-year anniversary of introducing income protection into our menu by starting to issue our annual policyholder emails.
“In these we remind policyholders of the benefits of their policy, such as Premium Waiver which is included as standard, Guaranteed Increase Options and Guardian Anytime, as well as how to make a claim.
“We also encourage customers to speak to their financial adviser to make sure they’re not paying for cover that they can’t claim for.
“We’ve designed the emails to help educate and engage our customers by reminding them of the benefits and terms of their policy.
“All Guardian’s registered advisers have been sent a copy and we hope it is helpful to them, both in their ongoing client conversations and in creating more certainty at claim.”
Roy McLoughlin, Protection Distributors Group (PDG) board member and director at Cavendish Ware, said: “It’s great to see that the industry is starting to respond to our call for annual policyholder mailings.
“Keeping clients informed and engaged with their protection policies is vital for improving trust in our industry and helping advisers continue to add value for our clients.
“While it’s obviously up to each individual adviser to maintain a good level of client contact, any help from providers and the rest of the industry with the ongoing adviser-client protection relationship is always welcome.”