The Income Protection Task Force (IPTF) has released the fourth instalment of its 7 Claims Stories series, addressing common misconceptions around income protection.
Story 4 – Demystifying Income Protection Calculations, authored by Tom Salmon, senior claims assessor at Pacific Life Re, with commentary from IPTF 7 Claims Stories lead Phil Deacon, explores how cover levels are set, how claims are assessed and how proportionate benefits work when claimants return to work.
Accompanied by a summary video featuring Salmon and IPTF executive director Vicky Churcher, the story highlights three key areas advisers often grapple with:
- Calculating cover needs at application stage
- Understanding benefit calculations at claim stage
- How proportionate benefits support a return to work
The initiative is designed to help advisers manage client expectations and improve customer outcomes.
Deacon said: “The financial aspects of income protection can feel dry and complicated, but it’s crucial that customers understand 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.”
In June, the IPTF published Story 3: Misrepresentation Matters, which examined the growing risk of misrepresentation in protection claims.
It featured insights from Cara Spinks, head of Life & Health at actuarial consultancy Broadstone, who outlined the wide-ranging impact of misrepresentation across the industry.
