National Friendly Income Protection (Protection Review: Gold, Adviser score 7.3)
National Friendly has launched a full income protection policy, complementing its recently launched Accident Only Income Protection policy.
The insurer says the new plan means a choice for clients seeking income protection, with the accident only version offering no medical underwriting, and appealing to those with pre-existing medical conditions who may not be able to secure full IP cover.
The new full policy has a commonsense underwriting approach, National Friendly says, which allows cover for well-controlled Type 2 diabetes, and the opportunity for a slick straight through application process, which it says is unique to the market.
The policy includes a benefit guarantee (up to £2,000 a month) to protect benefits based on the member’s income at the start of the policy, which should appeal to those with fluctuating incomes. A contingency benefit pays up to £500 a month for up to 12 months to those working less than 16 hours a week due to ill health or injury in certain circumstances.
Benefits are paid out over one or two years, accidental death benefit is included (paying a lump sum equal to one or two years’ benefit), and an extended list of hazardous pursuits is covered (up to a max benefit of £2,000 a month). Overall maximum benefit is £6,000 a month. Premiums are age-costed (they go up each year) on either a guaranteed or five yearly reviewable basis.
A partnership with HealthHero provides other benefits such as 24/7 access to a private GP, plus phone and video consultations, private prescriptions and open referrals. The plan can also assist in getting customers back to work quickly through its rehabilitation benefit, offering access to private therapies and consultations up to £1,000 a year.
The plan is designed for those working 16 hours a week or more, with benefit payable if they cannot work due to ill health or injury, and will pay up to 70% of earnings. Deferred periods of 30, 60, 90 and 180 days are available. End date is to age 60, 65, 70 or the State retirement age at entry. Benefits can be level, or linked to the RPI (max 5% pa). Exclusions include intentional self-inflicted injuries and those sustained doing something against medical advice, or whilst participating in a criminal activity, or caused by abuse of drugs or alcohol. Max age at entry is 59.
Comment: it’s good that National Friendly has now launched a ‘standard’ IP plan, to go with its more niche Accident Only IP plan.
Good to see too that some hazardous pursuits are covered and being able to cover those with well-controlled Type 2 diabetes is good, meaning the plan should have value to advisers who have not previously used National Friendly too.
This plan only offers one or two year benefit periods, but that makes it a viable alternative to the once popular PPI type plans, with all the advantages of long term cover, a choice of deferred periods and useful help insurance benefits too.
Plus points: Simple age-costed IP plan; Complements NF’s accident only IP plan; Range of additional benefits; Choice of deferred periods.
Not so plus points: Maximum benefit term is just two years; Premiums rise each year.
Website: http://www.nationalfriendly.co.uk.
Rating (max 10): Overall: 8. Gold
Tags: IP; National Friendly
I Mark: No