The Income Protection Task Force (IPTF) has released the fourth instalment of its 7 Claims Stories series, with this one aimed at improving understanding of income protection (IP) calculations.
Demystifying income protection calculations tackles how cover levels are set, how claims are assessed and how proportionate benefits work when claimants return to work.
The story explores:
- Calculating cover needs at application stage
- Understanding benefit calculations at claim stage
- How proportionate benefits support a return to work
The IPTF explained these insights aim to support advisers in managing client expectations and to improve customer outcomes.
It has been written by Pacific Life Re senior claims assessor Tom Salmon and includes commentary from IPTF 7 Claims Stories lead Phil Deacon.
Deacon said: “The financial aspects of income protection can feel dry and complicated, but it’s crucial that customers know what they’re covered for so there are no surprises at claim.
“Tom’s piece underlines the need for clear education, better adviser-client conversations, and transparent annual statements.
“Income protection isn’t just another product – it’s the financial safety net that underpins everything else.”