Tunbridge Wells Equitable Friendly Society (TWEFS) has revamped its Replacement Income Cover by payi...
Tunbridge Wells Equitable Friendly Society (TWEFS) has revamped its Replacement Income Cover by paying out benefits to housepersons regardless of any income earned from part-time work, writes Catherine Williams.
The move marks the society's recognition that housepersons, particularly those in part-time work, have fared badly under income protection in the past. A houseperson who has had to take on part-time work to boost their income will
not qualify for housepersons'
cover under income protection, but because their earnings are too low, will not qualify for occupation-based income protection either.
Replacement Income Cover will be paid to housepersons regardless of part-time earnings up to an annual limit of £10,500, when normal occupation-based cover will apply. The maximum monthly payout of £1,250 favourably compares with an industry average of about £670 pm.
In addition, the society is extending the career break option on the plan from one to three years, which will again be of particular benefit for mothers who wish to take time off work, to have or raise children. The career break option is also available to non-houseperson policyholders.
Research by TWEFS revealed that 85% of women with dependent children do not have insurance in place to cover the cost of replacing the duties they carry out, should they fall ill or become disabled. These costs which would include, for example, paying for a nanny or childminder, and a cleaner are estimated to be up to £250 per week.
