British Friendly is launching an income protection plan designed for the intermediary market.
The mutual, founded in 1902, will offer ‘own occupation' cover, even for risky occupations. The product offers cover to age 70 or a short term budget cover - with one, two or a rarer five year option.
Reduced premiums may be offered if certain exclusions are applied. The insurer noted that, while this is becoming common in the critical illness market, it remains rare in income protection.
Mark Myers, CEO of British Friendly, said there would be a "managed" roll out to the networks from the end of March, but the product would be available direct to invited IFAs from March 21. He said: "We have already got these agreements in place, for instance we just signed to the exchange, it is just a matter of timing the roll out to cope with demand."
However, Steve Wanstall, head of sales at British Friendly,added: "But if any IFA wants to sell our products from the 21st, I should imagine we would let them."
Features include:
- No loadings for occupation, gender or smoking.
- Cover to 70% gross annual income to age 70.
- Day one cover and deferred periods from a week to 52 weeks.
- Payments and commission paid weekly.
- Guaranteed insurability and career break options.
- No standard exclusions, no initial waiting period and no policy fees.
- Rehab and proportional benefits offered with support through a health councelling and advisory service.
Myers claimed another sales point was that British Friendly paid 96% of claims in 2010. "About 60% of the market is controlled by 5 providers, some of which don't even publish stats. Some that do claim payments in the low 90s, but mutuals have paid in the mid 90s since forever," he said.
