Assurant Solutions Home Protector and Income Protector
Assurant Solutions claims to have the first ASU (accident, sickness and unemployment) products to be underwritten at point of sale. It says that this new breed of annually renewable products promises to be the antidote to the problems that have plagued the product in recent years.
The plan comes in two versions—Home Protector for mortgage or rent payments and Income Protector as a short term means to protect a percentage of income.
Essentially, Home Protector covers up to 120% of mortgage or rental payments up to £3,000 a month, while Income Protector covers up to £3,000 of monthly income.
Both plans use a rating engine that takes account of the customer’s age and risk profile. Assurant says the products are the first stage of what will be a continual evolution of its point of sale ASU proposition, and that its rating engine can take an infinite number of variables into consideration. Otherwise, plans details follow the traditional ASU format.
Focusing on the Home Protector, it is available to those aged 18 to 64 in the UK who are in full time work. The involuntary unemployment element of the plan includes carer cover, which is payable if the insured becomes a family carer. The plan also includes return to work cover, which pays a proportionate benefit if the claimant returns to work on a reduced income. An independent Jobcare service is built-in to assist return to work.
As with other ASU plans, claims for backache and mental health must be supported by specialist medical evidence. The insurer can cancel cover at renewal or at any time after 90 days’ notice if it stops ‘offering this type of cover altogether’.
Plus points: It is good to see new ASU ideas emerging, and Assurant’s solution looks to offer a better deal for customers, with the prospect that many will now pay less than before too. Annually renewable plans also (theoretically) give greater security than rolling monthly renewed plans; Point of sale underwriting, rather than simply using a moratorium or excluding PECs (pre-existing conditions), gives greater certainty that all valid claims will be paid.
Not so plus points: We have not yet seen pricing so, as always, it pays to shop around when buying ASU; Some customers will pay more but, as that reflects their greater risk, should still get value for money; We were disappointed that a week after launch, there was no mention of these new plans (or even the press release) on the firm’s website; Moreover, some of the information on its products page had not been updated since 2004; So, the fact that over 750,000 people were made unemployed in the year to July 2003 may be interesting to historians, but it’s embarrassing to still feature that stat; That’s a pity—Assurant is better than that!
Website: http://www.assurantsolutions.com.
Rating (max 10): Innovation: 6.5. Overall: 6. Bronze.