Providing a ‘Key features’ document as an alternative to a policy summary

The content and format of the Key features document would need to comply with the FSA rules at ICOB 5.5.4R  PDF (opens new window) 

Creating a Demands and Needs Statement by asking questions in a certain way on the application form

For example:

• 'If you answer 'YES' to Questions 1 and 2 and 3 your demands and needs are those of an employee whose wishes to ensure that your mortgage payments are covered now and for the next X months
• If you answered ‘YES’ to Question 6 your demands and needs are for a policy that offers flexibility for you to cancel before the end of the contract period
• If you answered ‘YES’ to Question 7 and ‘YES’ to question 8 your demands and needs are for a policy that allows you to add the premium to the mortgage loan but also to receive a refund if you cancel early after paying a one-off upfront premium
• If you answered ‘YES’ to Question 7 and ‘NO’ to question 8 your demands and needs are for a policy that allows you to add the premium to the mortgage loan but not necessarily to receive a refund if you cancel early
• etc

Creating a product-specific Demands and Needs Statement that will be appropriate for anyone wishing to buy a particular policy

For example:

'This MPPI policy meets the demands and needs of those:

• who are aged X-Y
• live in the UK for at least 40 weeks of the year
• started their employment at least X months ago
• etc

and wish to:

• cover their mortgage payment for at least X months in the event of an accident, sickness or involuntary unemployment
• receive payments within X months of the above event occurring
• pay their premiums monthly and have the right to cancel any time…’
• etc

Giving a customer a written record of the demands and needs you have discussed with them.

This will be made up of information gathered during the Fact Find and Eligibility Check. For an overview of the likely key content, see the Demands and needs checklist: non advised sales.