Cirencester Friendly My Extra Benefits
Cirencester Friendly has launched My Extra Benefits as a package of add-ons that can be included on its Income Assured Plus and My Earnings Insurance income protection policies.
The first option is Fracture and Hospitalisation Benefit. This is in two parts. Fracture Benefit pays a £1,000 lump sum if the customer suffers a fracture of one of the named bones in the cover and the benefit is not dependant on an income protection plan claim being paid. One claim per accident/incident is payable and only one claim in any 12 month period can be made. The second element of this benefit is Hospitalisation Benefit, which pays £50 a night after three consecutive nights in a UK hospital and is then backdated to the first night’s stay. The maximum benefit is 21 nights in any 12 month period. Fracture & Hospitalisation Benefit costs £4 a month on top of the customer’s IP premium.
The second optional benefit is Working Life Death Benefit, which pays £5,000 if the customer dies during their working life and before age 70. This benefit costs £5 a month or customers can add both for a total of £9 a month. Premiums are fixed and guaranteed.
Both options are available to customers aged 16-64, and existing policyholders can add the benefit(s) too. Both benefits can run to age 70 and, while both benefits are underwritten, for existing clients, just three medical questions are asked.
Comment: Cirencester Friendly is a well-established IP provider and has added two useful new add-ons that customers can choose to have none, either or both of.
Working Life Death Benefit provides exactly that, with a £5K sum insured that should cover most funeral costs. Despite the high cost of funerals, many people still have no or too little life cover, so this simple way of ensuring your funeral costs are paid could appeal to many ordinary working families.
The fracture and hospitalisation benefits could be useful too, albeit benefits are fixed rather than scaled, and more minor fractures are not covered (e.g. a broken finger).
One criticism is that you may be better off choosing conventional term life insurance and a health cash plan instead. That’s true, but many people simply don’t ever get round to doing that and, while such policies can provide more cover, that is often at higher cost too and is far less simple to arrange.
Both benefits are most likely to appeal to average working families or ‘blue collar’ workers who don’t have IP through their employer (or who are self-employed).
Plus points: A simple choice of one or two useful add-ons; Each is available separately; Premiums are fixed and guaranteed; Valuable benefits at low cost and with minimal underwriting.
Not so plus points: Both benefits cost extra and there is no discount for choosing both; Benefits are relatively low; As an alternative, an HCP and term life insurance may provide more cover and other benefits, albeit probably at a higher cost and may not be so easy to arrange.
Website: http://www.cirencester-friendly.co.uk
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: IP; Cirencester Friendly