Royal & SunAlliance is extending cover on its Income Security product to include dividend and spouse...
Royal & SunAlliance is extending cover on its Income Security product to include dividend and spouse's income.
The move comes amid growth in one-person small businesses, for example IT specialists who have set up as computer contractors to deal with the millennium bug. Under the revamped policy, the group will cover the income from a spouse who is employed by the firm, if they draw their income solely from company dividends and should the driver of the business have to stop working through ill health.
Before the change, the cover applied only to the principal's income. Income Security offers cover for 55% of the principal's income which would equate to £19,250 for an income of £35,000. But if the spouses' income is included, on a salary of £12,000, for example, the total cover, including the principal's salary of £35,000, would be £25,050.
Ronnie Martin, the group's market manager, life and health, said: "Income protection cover is the cornerstone of individual and family protection. We are now making it easier for advisers to provide fuller cover, particularly for the self-employed, when the main income provider becomes incapacitated."
