Columbus Direct Income Insurance
Travel insurance specialist Columbus Direct has launched a direct to consumer (D2C) ASU (accident, sickness and unemployment) product.
Main features of the plan are:
Choice of ASU or AS only or U only cover.
Maximum monthly benefit is £2,500 (the minimum is £100) and customers can choose any level of cover up to that, provided that it does not exceed 60% of their income.
Benefit can be paid for up to 6 or 12 months.
No initial three month exclusion period.
Excess periods of 0, 30 or 60 days are available. The initial period for unemployment benefit is 90 days.
If switching from another insurer (provided it has been running for at least 90 days) the initial 90 day exclusion period for unemployment cover is waived.
Premiums are age banded.
There is no policy exclusion for dismissal, misconduct or missed sales targets.
Chronic conditions are covered.
Stress is covered, provided diagnosis is from a registered consultant psychiatrist and the customer is continuously under their supervision.
Back conditions are covered, unless a pre-existing condition.
Pre-existing medical conditions are excluded.
Cover can last to age 65.
The policy is underwritten at Lloyd’s.
Claims are administered by MMS.
Customers must be aged 18 to 62 at outset and live in the UK.
Self-employed people are not covered.
In effect, cover is on a 30 day rolling basis.
Comment: ASU insurance can be simple and cheap(ish) and Columbus Direct’s new policy is a good example of the type, without adding anything revolutionary.
It avoids some of the worst restrictions such plans can have, although it also limits benefits to 12 months (some ASU plans will pay out longer). The name is interesting – income insurance rather than IP or PPI- and, when you come to think about it, why do we need to add the word ‘protection’ anyway? Especially given its associations with PPI insurance and the scandals associated with it.
Having employment cover is useful, although this plan is not available to people who are self-employed. Age banding makes sense, although that can disadvantage older customers.
All in all, the plan should appeal to those looking for ASU cover, provided that the price is right.
Plus points: Simple ASU cover; Easy to buy; Some options are available to tailor cover to need; Includes optional unemployment insurance; Age-related premiums benefit younger customers.
Not so plus points: Not as comprehensive as traditional long term income protection (PHI) cover; Rolling 30 day cover so could be cancelled by Columbus at short notice; Not available to self-employed workers or those with no paid occupation; Maximum benefit just 12 months; Age-related premiums are less attractive to older customers.
Website: http://www.columbusdirect.com.
Rating (max 10): Innovation: 7. Overall: 7. Silver
Tags: ASU; Columbus Direct