Menu plan offers three definitions of incapacity and six levels of cover
Swiss Life has launched a flexible group income prot- ection (IP) solution called Matrix Income Protection (MIP). The product is menu driven to allow employers to tailor packages to suit individual company budgetary constraints.
MIP offers six levels of cover, which in turn have a number of variations. As well as a standard fully comprehensive package, a number of additional levels of cover are available including limited payment term, switch definition benefit, totalpermanent disability lump sum benefit, enhanced benefit for those who are severely disabled and a reducing benefit option.
One of the key changes to the protection proposition is that the definition of 'any occupation' has been dropped. Instead, MIP offers three definitions of incapacity, 'own occupation', 'suited occ- upation' and 'activities of daily living'.
Own occupation is classified as an employee having an illness or injury and being incapable of performing the material and substantial duties of their occupation.
The definition of suited occupation is the same as that of own occupation, but includes an inability to perform all other occupations for which claimants are trained.
Activities of daily work are assessed on physical activities including walking, comm- unication, dexterity and financial competence. It also includes satisfying one of the two mental health activities of daily working including severe mental illness classification ICD-10 code and organic brain disease or injury.
Discussing the reasons behind the launch, Rob Doole, regional sales manager at Swiss Life (UK), said research conducted by the provider cited cost, complexity and a high staff turnover as reasons for low IP sales. Doole added that long-term value for money and greater clarity were demanded for the product to become more attractive.
Brian Hurd, managing director at Swiss Life said MIP is the first step towards addressing the ever-changing needs of the business market.
'Traditionally, income prot- ection has come in a one size fits all package, disregarding the fact that employers have differing objectives, budgets and attitudes towards the provision of benefits.
'Matrix Income Protection addresses both an employer's need to offer incentives to attract, retain and care for staff and an employee's expectations of what cons- titutes a fair raft of benefits,' he said.
