PG Mutual Income Protection Plus
PG Mutual Income Protection Plus
PG Mutual’s updated Income Protection Plus product includes three new benefits:
- An enhanced Loyalty Bonus. This pays out on death a minimum lump sum of £10,000 plus six months income benefit to the customer’s family in the event of their death.
- Paycare GP 24/7. This benefit gives qualifying members access to professional advice and guidance. A dedicated online app means appointments can be booked easily, and customers can attend a consultation through a telephone or video link, and access health and fitness information and more online. Customers can also receive private prescription medication delivered to their door.
- Paycare Telephone Counselling Service. This benefit gives qualifying members access to confidential, comprehensive telephone counselling and support with a qualified professional, when they need extra support.
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