British Friendly Short Term Protect
Income protection insurer British Friendly launched its new brand in May and has introduced a range of updates to its proposition including:
More deferred periods on its short term income protection products. Customers can now choose 1, 4, 8 and 13 week deferred periods – the widest range available for 1, 2 or five years plans British Friendly says.
A death benefit of six months’ payments.
An immediate acceptance application process through the insurer’s online system.
British Friendly now offers three main types of income protection cover:
BFS Long Term Protect. Pays up to 70% of taxable income up to age 70.
BFS Short Term Protect. Pays up to 70% of annual income for up to 1, 2 or 5 years, again up to age 70. An own occupation disability definition is used and benefits are paid direct into the customer’s bank account. The plan is available to UK taxpayers aged 18 to 64 at outset and who have a UK GP. Benefits can be from £50 to £875 a week.
BFS Breathing Space. Pays up to £250 a week for 1, 2 or 5 years up to age 65 with no need to prove income or hours.
Premiums increase over time rather than being fixed throughout the term.
Comment: British Friendly is one of the smaller protection insurers but that can be an advantage in some situations. In May it rebranded and has rolled out – and is continuing to do so – improvements that should benefit advisers as well as customers. Part of that is making cover easier to buy – and, generally, that’s something we are very much in favour of.
Premiums do rise each year and, while that is unusual for most types of long term protection insurance, it is common for most other types of insurance and can mean much lower premiums at outset, at a time for many people when their income is relatively low compared to what it will be in future.
Plus points: Rebranded insurer has rolled out a number of changes to benefit both advisers and customers; New deferred periods on its short term plan; New six months death benefit; A small insurer but none the worse for that; Three plan types available; Lowest premiums are at outset.
Not so plus points: Premiums will rise over time, which can become an issue at older ages; Relatively low maximum insured benefit.
Website: www.britishfriendly.com.
Rating (max 10): Innovation: 7. Overall: 8. Gold