Income protection provider Unum is introducing its new Premier cover product this month.

Unum is offering a bespoke package to group income protection clients in a bid to minimise the time workers have off sick.

According to the FT Adviser, the insurer will work with companies advisers offering tailored vocational rehabilitation on managing absent employees, and working out systems to get them back into work.

National accounts director for Unum, Colin Fitzgerald, called Premier income protection: ‘a proven, modern and flexible support system’.

Charles Richards, an IFA with Capital Asset Management, said of Unum: ‘For the clients I have seen use it they are fantastic. I would probably go straight to it for group income protection‘.

Insurance Providers believe sales of income protection will rise in 2008.

Research carried out by Life Search found that 40% of staff at 28 insurers and reinsurers thought income protection sales would increase in 2008. 

Matt Morris, LifeSearch’s policy adviser, said there had been a more “positive vibe” around income protection recently, with recent figures from the Association of British Insurers showing an increase in new business sales and a raised awareness of the product among advisers.

He said: ‘There is also more awareness generally among the public – the economic uncertainty has resulted in more consumers becoming interested in ways to protect their mortgage. People are worried about redundancy and there is more scope to sell income protection off the back of that.’

Protection specialist LifeSearch believe current UK economic problems should prompt homeowners to review their insurance.

Income protection could help homeowners protect their ability to make repayments on their mortgage and any other loans.

LifeSearch have come up with 10 tips to help you choose a policy. They firstly warn homeowners not to confuse income protection with mortgage payment protection insurance.

The protection specialist suggest those with mortgages to check the amount of cover offered, the benefits you are entitled to from the Government and your employer, as well ensuring premiums are guaranteed.

They also say you should consider alternatives, such as critical illness, this could be more suitable for your specific circumstances.

Policy adviser at LifeSearch, Matt Morris, said: ‘For most of us, the nightmare scenario must be discovering that not only have we been diagnosed with a long-term illness, but the realisation that income is going to dry up in a few weeks as well. Peace of mind is a few pounds a week spent on a good Income Protection policy.’

The Sunday Times has reported that JC Flowers is working on a revised takeover bid for Friends Provident.

Last week, the Takeover Panel intervened after the US private equity group’s informal offer of £3.5 billion was rejected by Friends Provident.

JC Flowers has until the end of the Month to table a forma bid and has been in conversation with a number of groups who may be interested in buying parts of the business.

Following last year’s failure of its merger negotiations with Resolution, Friends has been undertaking a strategic review that has led to the auction of its Lombard division.

Friends Provident has been up for sale since January.

Recent research has found that 20 million adults in the UK are without life cover or income protection insurance. The reason is not because it is unaffordable, but is simply due to apathy.

More than a third (37%) of people who responded to the Norwich Union survey said they did not have life cover because they haven’t got round to it or they have not thought about it.

The results of this survey are not at all suprising. Insurers and advisers are well aware that people do not wake up in the morning with the desire to purchase income protection or life cover. It is only when they take out a mortgage or become aware of someone who has suffered an illness that they might think about life or critical illness insurance.

Even then the uptake is poor, according to research by AXA, the average family is under-insured by £176,776 and three quarters of UK adults are under-insured by an average of £96,927.

The Health Insurance & Protection magazine suggests that one place protection could be encouraged is within the workplace:  ‘Using employers to actively target people’s protection needs seems like the next logical step’.

The protection specialists latest figures have shown that their Critical Illness payouts have risen by 20% between 2005 and 2007.

But equally the number of claims being declined has risen.

Zurich declined 12 per cent of critical illness claims in 2007, compared with 10 per cent in 2006.

The insurer found in 2007 3% of claims were declined due to non-disclosure and 9% were turned down due to the definition of an illness simply not being met. 

Cancer has remained the most common condition accounting for 55% of critical illness claims paid in 2007.

Heart attacks were the cause of 13% of critical illness claims paid out and strokes were the third most common condition, accounting for 6%.

Alan Lakey, of IFA Highclere Financial Services, says: ‘The trouble with critical illness and income protection is a lot of clients, and advisers, do not understand the definitions. A client may have had an operation for a blocked artery but the definition of the policy may only cover the client for two blocked arteries.’

The well known charity known for its interest in social policy is recommending that a new type of insurance should be put in place to provide a safety net for people at risk of losing their homes.

 They are calling for the formation of a Sustainable Home Ownership Partnership (SHOP) which could provide cover for total mortgage repayments for 10 months, if a homeowner is unable to work for any reason.

The scheme would be set up as a partnership between the Government, lenders and borrowers, with the aim to provide much cheaper insurance than is currently available.

The charity estimates that less than one in five homeowners has any form of income protection.

The scheme could also provide cover for around £3.40 per month for every £100 of mortgage repayment.

The Foundation is suggesting that borrowers pay 50% of the cost, with lenders and the Government both contributing 25%. The money could then be used to buy block insurance or build up reserves.

Standard Life have reported a 43% profit rise in 2007.

The insurance company secured new business in high margin products while at the same time lowering costs.

Pre-tax profit rose 32%, to £714 million, despite investors withdrawing £249 million from policies that had not reached their maturity dates.

In reporting the results, Standard Life was also able to assure investors that it held no direct exposures to the US mortgage market.

Standard Life’s Chief Executive said: ‘We have beaten all our profitability and efficiency targets for 2007 and achieved record sales, a platform which we will build upon for further growth in years to come. Against an uncertain economic backdrop we have made a good start to 2008 and are working to improve our core profitability.’

A leading finance company has conducted research, finding people would rather get rid of non-essential items such as mobile phone contracts, before surrendering their payment protection or Life Cover policies.

Only one in ten would choose to give up their life insurance policy due to a tighter budget and over a third of people cited Life Cover as their most important policy.

According to this research the second most important policy, came in as Income Protection .

And interestingly the first thing people would cut out instead of Life Insurance Cover would be TV subscriptions, followed by mobile phone contracts.

Insurers are duping customers into wasting thousands of pounds on ‘useless, expensive’ policies, campaigners warned last night.

Consumer group Which? said some cover is vital, for buildings, house contents, life and cars.

But it said other policies were often unnecessary, were hard to claim on and rarely paid out.

Although they offered ‘peace of mind’, much of what they covered was already protected in law or by other policies.

Even though some policies offer cover against identity theft, any proven identity fraud losses would be paid by people’s banks.

Policies covering accidental death and injury may be covered under standard life insurance, while mobile phones are often included in home contents cover.

Tony Levene, of Which?, said: ‘You can buy insurance against almost any risk, even alien abduction. People should carry out a risk assessment of their own to make an informed choice.’