Wesleyan Personal Income Protection Plan
Website http://www.wesleyan.co.uk
Wesleyan has successfully targeted the professional market in recent times and its new income protection plan has been specifically tailored to the needs of medical, dental and legal workers. The plan’s main features include:
An own occupation disability definition.
Benefits can be payable to a selected retirement age or for up to 2-5 years only.
The maximum benefit is £2,600 a week for doctors, dentists and lawyers and £1,400 a week for other professionals. For annual incomes up to £150,000 a year, the maximum benefit is 55% of pre-claim income. Above that it is £82,500 plus 40% of income over £150K. Earnings includes benefits in kind and dividends (if work related).
Guaranteed or reviewable rates.
Deferred periods of 0, 2, 4, 8, 13, 26 or 52 weeks. Up to five different periods can be chosen to match benefits to the customer’s sick pay income while they are off work.
Guaranteed increase options on increased earnings resulting from a significant career step; getting married/civil partnership; having or adopting children; taking out a bigger mortgage. Age limits apply.
Annual indexation increases cover in line with the RPI, up to 12% a year, and can be stopped and restarted at will.
Career break options.
Access to specialist health treatments and services through the Wesleyan Health & Wellbeing Scheme.
As well as launching this plan, Wesleyan has also launched a separate personal accident plan for professional groups.
Comment: Wesleyan has targeted the professional market to great effect and this plan continues that approach. That can be useful for an insurer as insured benefits are usually higher, risks are lower and lapses may be lower too. Professionals can have different needs to some other occupation groups too – one reason why up to five different deferred periods can be used in the same plan.
Previously some groups (e.g. surgeons) have not been able to get own occupation definitions, as a relatively minor disability can stop their practicing, even though they may be very employable elsewhere. This plan offers own occ to all.
The Health & Wellbeing Scheme looks to be a valuable add-on too.
One thing that appears to be missing is covering situations such as employing a locum, This can be a tricky area as say a doctor may be unable to work, have to employ a locum, but not see their income fall initially. We could see no mention of such situations in the literature we saw. Another gripe common to many IP insurers is that benefits are expressed as weekly but are paid monthly. Do many professionals get paid weekly these days?
Plus points: Simple IP cover aimed at professionals; Own occupation definition; Useful Health & Wellbeing Scheme; The rules for the self-employed and those receiving dividends from their business are well set out.
Not so plus points: Fairly standard benefits package; Benefits are calculated weekly but paid monthly; Complex situations such as doctors employing locums are not explained in the literature we saw.
Website: http://www.wesleyan.co.uk.
Rating (max 10): Innovation: 7. Overall: 7.5. Silver
Tags: PMI; Wesleyan