Royal London Business Menu Plan
Since dropping the Bright Grey and Scottish Provident brands in 2015, Royal London has been able to select the best bits of both brands and present arguably a more coherent protection insurance brand that builds on the legacy of an £84.5bn group that employs almost 3,000 people and is now the largest mutual life, pensions and investment company in the UK.
This plan is Royal London’s business version of its Personal Menu Plan and can include the following covers:
Term insurance. Also pays out on terminal illness.
Critical illness cover. Covers 54 conditions of which 44 are full payment and ten are additional payments (which pay the lower of 25% of the benefit or £25K). Sixteen of the CI conditions have an ABI+ definition. Children’s cover covers them from birth to age 21 for 50% of the full insured amount up to a max of £25K.
Income protection. Up to 55% of earnings up to a maximum of £250K a year. The benefit can be paid for up to one year, two years or to the end of the plan term.
Key person income protection. Up to 75% of the gross profit attributed to the key person can be insured up to a maximum of £250K a year. The benefit can be paid for up to one to five years.
Unemployment cover. Up to 55% of earnings up to a maximum of £36K a year. Pays up to 52 or 104 weeks. Not available standalone.
Waiver of premium. Pays premiums if unable to work because of accident or illness, with a choice of deferred periods of 4, 8, 13, 26 or 52 weeks.
Free cover before the plan starts in some circumstances.
The plan also includes the Helping Hand service.
Additional support services include a personal nurse adviser service; face-to-face second medical opinion; equipment and medical aids; bereavement counselling; home visits with an appropriate healthcare specialist, and legal assistance.
Premiums can be guaranteed or reviewable every five years. Cover can be level, increasing or decreasing.
Comment: Business protection – two words that have sent a chill up the back of many a financial adviser. Yet they shouldn’t. Business insurance is more complex than personal insurance but a reasonable understanding of what you need to know, what options are available and how and why to choose between them is all that is needed in most cases.
In its online support, Royal London offers a range of useful literature that can help advisers, customers and business advisers to understand what protection needs a business will have and how best to meet those needs. Of particular note is the 43 page ‘Why leave it to chance? Business protection made simple guide. It’s recommended reading.
This plan brings the main types of cover under one roof into a single plan, which makes life easier too. Far too many businesses take unnecessary risks with the protection cover they have (or rather, don’t have) and straightforward solutions that provide practical and financial help can considerably reduce those risks.
All in all, Royal London’s protection range of RLP, and personal and business menu plans is a neat package of solutions that covers an awful lot of ground.
Plus points: A range of business insurance covers under a single plan; Very good support literature that makes writing business protection as straightforward as possible; Includes optional key person IP cover.
Not so plus points: Business protection is still not as common as it should be – partly because many businesses are not sure where the real risks are or how best to mitigate against them.
Website: http://www.royallondon.com.
Rating (max 10): Innovation: 8.5. Overall: 8.5. Gold
Tags: Menu; Royal London