Holloway Friendly cost of living pause option (Protection Review: Gold, Adviser Score 7.5)
Specialist income protection provider Holloway Friendly now offers its members the ability to pause their insurance and payments for up to six months, in response to the cost-of-living crisis. The option is available to members who’ve had their insurance for at least three months.
Holloway, which says it introduced a similar payment break option during the Covid pandemic for members experiencing financial difficulties, has also introduced a member support fund. It will use this, at its discretion, where it identifies members who might benefit from some financial help.
The third change is that all remaining Covid exclusions have now been removed for both new business and existing members.
Comment: Insurers responded in a number of ways to the Covid pandemic and one of the most important was enabling customers to stop paying for a short period. The exact nature of that depended on the insurer, with some (much) better than others but, importantly, such moves established a useful precedent.
Now, the crisis is all about bills and affordability, but the principle remains and Holloway is allowing its customers to stop for up to six months. While that won’t be enough for some, it’s still a valuable benefit to have, giving some peace of mind even if the facility is never used.
However, cover falls away too so care needs to be taken when considering taking up the option. The member support fund is also welcome, although its discretionary nature means it is not a guaranteed benefit.
Plus points: Six month moratorium option effectively; Discretionary member support fund; Covid exclusions removed.
Not so plus points: Not available in the first three months of membership; Member support fund is a discretionary benefit and so not guaranteed.
Website: http://www.hollowayfriendly.co.uk.
Rating (max 10): Overall: 8. Gold
Tags: IP; Holloway Friendly
I Mark: No