Best Insurance InstaProtect
Best Insurance is a Hove based broker, established in 2010 by Kesh Thukaram and Stuart Boseley.
InstaProtect is a new short term accident, sickness and unemployment (ASU) policy that has no initial exclusion periods. The plan is simple to buy and to understand, with simplified medical underwriting terms too. Cover is annually renewable and can run up to age 65.
InstaProtect pays out up to the lower of 60% of gross income or £2,000 a month for up to 12 months on being unable to work due to accident, sickness or unemployment. In addition to the regular benefit, a one off £2,500 critical illness payment is made if the customer develops a qualifying medical condition. The conditions covered by the policy are cancer, coronary artery by-pass grafts, heart attack, kidney failure, major organ transplant and stroke diagnosed by a doctor.
The policy is available to people aged 18 to 55, who have no major ailments and who have been permanently employed for at least 12 months and pay Class 1 National Insurance contributions.
Unlike most ASU plans, the policy pays out on GP sign-off rather than that of a specialist. There is also no initial waiting period before the unemployment cover kicks in.
Offering back to day one cover, the plan ceases benefit if the customer is ‘well enough or able to return to your job or a different job’. This is defined as ‘any work that your experience, education or training may reasonably qualify you to do’.
The policy is underwritten by London General Insurance and claims are handled by TWG Services Ltd.
Comment: ASU has been described by London General MD Ingo Soesman as ‘a legacy underwriting format’ and that’s a good description.
Relatively little innovation has applied in the ASU space, despite the fact that the PPI misspelling scandal has damaged this type of cover and there is certainly a need for some fresh thinking. The big advantage of ASU over long term income protection is that it’s very easy to understand and to buy and Best Insurance has further enhanced that experience. Cover is back to day one (more expensive, but valuable to a lot of people) and there is even a small CI element built in too.
There are some downsides too (paying IPT on premiums being one of them) and cover can be discontinued or changed at renewal and the plan’s scope is narrower than for long term IP, with fewer cover choices. The list of exclusions is quite long and the disability definition is a ‘suited’ definition rather than the wider and now common ‘own occupation’ definition.
Plus points: ASU cover with some of the wrinkles taken out; Simple and easy to buy back to day one cover; No waiting period before unemployment cover operates; Sign off is from the patient’s GP, which saves time and increases certainty; Built-in CI cover.
Not so plus points: Not available to self-employed or non-employed people; The policy could be cancelled or changed at annual renewal; The disability definition is not as wide as a full own occupation definition; Not all occupations are accepted; A relatively long list of exclusions.
Website: http://www.bestinsurance.co.uk.
Rating (max 10): Innovation: 8. Overall: 7.5. Silver
Tags: ASU; Best Insurance