BFS Protect Policy
British Friendly may be a new name to most advisers, but has been around since 1902, originally providing sickness benefits to commercial travellers and their families.
Now, the company is targeting the adviser market and has introduced a new product to meet their needs.
The income protection plan offers an ‘own life’ disability definition and no premium loadings for occupation, gender or smoking. Maximum cover is 70% of gross annual income up to £45,500 a year.
Day one cover is available, along with deferred periods of 1, 4, 8, 13, 26 or 52 weeks. Cover can be to age 50-70 or for a benefit period of 1, 2 or 5 years only. Short term policies all have a deferred period of four weeks.
There are no standard exclusions, initial waiting periods or policy fees. Guaranteed insurability (every three years or on certain events happening) and career break options are included and premium reductions are given where a back or mental health exclusion has been applied at underwriting stage. Telephone interviewing is used at underwriting stage. Benefits can be increased by 5% a year or in line with increases in the RPI (capped at 10% a year).
In the event of terminal illness, the deferred period is waived. Customers must notify BFS not just about any change in occupation but also if they change address, their income falls by more than 10% or their employment status changes between employed and self-employed.
A female newsreader aged 35 wanting £2,000 a month benefit to age 65, deferred eight weeks would pay a premium of £54.20 a month.
Plus points: Comprehensive range of benefits and options; pricing looks to be very competitive; tele-underwriting; long-established IP provider. Some nice touches—such as waiving the deferred period on diagnosis of a terminal illness. Can appeal to both blue and white collar workers.
Not so plus points: As with any small provider looking to expand via IFAs—will the pricing remain competitive, how strict will the underwriting be and will their service levels be OK? We’re not sure why address notifications are a T&C.
Website: http://www.britishfriendly.co.uk.
Rating (max 10). Innovation: 7.5. Overall: 8. Gold.