Pioneer Friendly Society has revamped its income protection contract to offer improved features incl...
Pioneer Friendly Society has revamped its income protection contract to offer improved features including automatic waiver of premium and increased levels of IFA commission.
Waiver of premium will commence automatically after 13 weeks of incapacity on day one cover and on four, eight and 13-week deferred plans, and after 26 and 52 weeks on plans with deferrals of this respective length.
The eight, 26 and 52-week deferrals are also new to the plan and a policyholder can elect for a maximum of two deferred periods in a plan, thereby tiering benefits according to the severity of the disability. The initial no-claims period has been reduced from four months to three months for all new contracts, including all deferred periods.
Houseperson's cover has been doubled from £208pm to £416pm and policyholders wishing to take a career break will be able to return to work within 12 months without having to provide further medical evidence.
This is the same for policyholders who become unemployed - they will remain covered with no further underwriting if they return to work within a year. The maximum benefit here is £4,992 per year.
Pioneer's definition of incapacity has also been altered. The own occupation definition will extend to the first 12 months of the claim rather than the previous six months, after which it will revert to an 'own or suited' definition.
The company will also take State benefits into account after 12 months, as opposed to the current six, under its 65% maximum benefit formula.
Commission to IFAs has also been enhanced. Commission of 130% Lautro, which equates to almost 125% of the first year's premiums is now payable on all new contracts with a 36-month earnings period.
Contact: www.pioneer-friendly.co.uk
