British Friendly Protect (Protection Review: Gold, Adviser Score 7.7)
Income protection specialist British Friendly has introduced the option of level guaranteed premiums on its short and long-term income protection plan Protect. This is in addition to its existing age-costed guaranteed premium plan.
The mutual’s list of changes includes:
Under the level guaranteed premium option, premiums are fixed throughout the policy term unless the customer selects the indexation option, when cover rises in line with increases in inflation.
A new benefit guarantee on Protect pays up to £1,500 a month. This can especially help customers who experience a genuine drop in income prior to making a claim.
New sick pay protection is available for teachers, dentists, doctors, surgeons, nurses and midwives. Those public sector customers have sick pay that can change with their length of service.
Limits on the guaranteed insurability options have changed and State benefits are now ignored as continuous income at point of claim.
Protect policy literature has been made clearer, simpler and more accessible for vulnerable customers.
The maximum annual benefit is £57,000 and there is a choice of deferred periods from day one (age-costed guaranteed premiums until policy end age only), week one (age-costed guaranteed premiums only) or 4, 8, 13, 26 or 52 weeks. Claim benefit periods can be 1, 2, 5 years or until policy end age.
Comment: British Friendly’s latest changes to its Protect plan offer more options including now guaranteed premiums. That has been a key requirement for many advisers so this and the other changes should further widen the appeal of the plan.
The mutual says the changes add to its inclusive approach to underwriting and it feels the changes should help make income protection more accessible for customers. That’s a commendable aim if individual IP is to further expand.
Plus points: Guaranteed premium option; £1,500 pm benefit guarantee option; Sick pay protection for key State workers; State benefits now ignored; Changes to guaranteed insurability.
Not so plus points: Relatively low maximum benefit; Some additional benefits are discretionary.
Website: http://www.britishfriendly.com.
Rating (max 10): Overall: 8. Gold
Tags: IP; British Friendly
I Mark: No