PMI launch imminent

The new policy will follow the Professional Income Protection policy recently updated by Pioneer, with which Exeter merged in March this year.

Nick Jones, brand and marketing manager at Exeter Friendly Society, said the as yet unnamed product will offer a more straightforward experience for consumers than previous offerings.

He said: "We are developing the plan under the Exeter brand, under which it will then be sold."

He added: "We are working on the details at the moment and we will be making announcements in a few weeks because we are in the final stages. The high level features will be a focus on simplicity and transparency. We have been trying to remove all complications to make it as customer friendly as possible. We have tried to put ourselves in the shoes of the customer and design the plan accordingly."

He said that PMI policies would be sold under the Exeter Friendly Society's imprint, while income protection (IP) policies will be sold under Pioneer's.

The Professional Income Protection policy was updated by Pioneer at the beginning of October. Pioneer said enhancements to the product included increasing the maximum benefits from 40% to 50%, a reduction of the minimum salary from £26,000 to £20,800 and the removal of any financial underwriting for up to £70,000. The benefits of the policy include no standard exclusions, a full range of deferred periods and increasing insurance options.

Pioneer also said its 'age costed premium structure' which begins with lower premiums for younger consumers but increases rapidly past age 49 would lead to accumulated customer savings of nearly £7,500 by the end of the policy's lifetime, with savings of over £13,500 by age 49 if the policy is taken out from age 30.