Close

PG Mutual Income Protection Plus

April 2018 PG Mutual: IP

Gold

PG Mutual Income Protection Plus

PG Mutual’s updated Income Protection Plus product includes three new benefits:

The three improvements are currently provided free of charge with membership.

The plan can run to age 65 and also includes an investment part which applies interest to members’ capital accounts each year (it paid 3% on average in 2014-2016, PG Mutal reports). Maximum cover under the plan is the lower of £1,200 a week or 70% of gross earnings, and applicants can apply for cover online.

Comment: Once upon a time (OK it was the late 1980s) investment based IP policies outsold more traditional IP cover pretty comprehensively. Since then, a number of factors, including lower interest rates and greater regulation have largely stopped that, although Holloway plans remain, albeit with restrictions.

PG Mutual’s changes are not especially radical but all are both valuable and useful. The new Paycare benefits provide practical help to customers, and the enhanced Loyalty Bonus (is dying being loyal?) further improves the appeal.

It’s not an IP plan for everyone, but does give a different take on IP and will be welcomed.

Plus points: The Paycare benefits  help customers who need help or to see a private GP; The Loyalty Bonus enhancement is a useful upgrade; Investment link could widen the appeal of the plan; Upgrades to an existing product.

Not so plus points: Lowish maximum benefits and expiry age compared to some IP plans; Investment linking creates regulatory issues and potentially increases the premium; Investment returns are not guaranteed; Not own occupation only.

Website: www.pgmutual.co.uk

Rating (max 10): Innovation:  8. Overall: 8. Gold

Tags: IP; PG Mutual

Gold
ShareThis Twitter LinkedIn Facebook Email
Previous Article Next Article

Keep on top of industry developments by email