Two new income protection products enter the market
PruProtect has further attempted to revolutionise the protection market with the launch of two new income protection (IP) products - Primary Cover and Comprehensive Cover.
The features of both products include an upfront financial guarantee meaning that the claimant does not have to provide further evidence about salary at the claims stage once this has been provided on the application. Also included is own occupation cover, recovery benefit which will provide customers with access to cash to pay for specialist care and support for their recovery, a back to work benefit, no general exclusions, seven day cover for self-employed with a retrospective back to day one benefit, and no deduction of state benefits.
In addition, the Comprehensive Cover will have an increased maximum cover, waiver of premium on other PruProtect benefits and PruHealth policies, an increased Recovery and Back to Work benefits, and a permanent disability uplift where the provider will increase the benefit amounts by 10% to reflect the greater impact on a claimant's lifestyle.
PruProtect gave sample figures for the cost of the plans: consumers who would be 35 on their next birthday. For males, under Primary Cover, this would be £26.27, and £30.87 on Comprehensive Cover with females paying £44.66 and £52.47. Ten years on, the premiums for males would have increased to £40.15 and £47.18, and £68.26 and £80.20 for females.
Phil Jeynes, key account manager for Direct Life and Pensions, said: "I think the innovative approach that PruProtect are taking to try and improve their offering and plug some of the gaps that exist in our industry is admirable. In particular their developments around IP seem to recognise what advisers and their customers are really looking for.
"I'm looking forward to seeing what the reaction of our LifeQuote users will be when PruProtect present to them during our forthcoming workshops."
At the launch in London, Deepak Jobanputra, product director at PruProtect, outlined how many of the benefits worked, including the back to work benefits which pays out 50% of the benefit on the claimant's first month back at work, and 25% on their second month back at work.
Jobanputra said: "We aim to provide appropriate, consumer engaged lifestyle protection products and we will continue to innovate to meet consumer needs."
PruProtect also launched Life Cover for consumers who are HIV+, a product which will provide up to £250,000 of life cover for a maximum period of 10 years. The plan will only be available at first to a limited number of HIV+ consumers, but PruProtect said there are plans to increase this in the future.
