British Friendly is launching a simplified income protection product covering accident and sickness with no underwriting and sold only through advisers.
The product includes no financial underwriting at application or claim stage, a long-term contract which can run until age 65, and cover set to pay out for one, two or five years per claim. Claims can be made after four weeks of being unable to work, with cover paid weekly at up to £250 a week or £13,000 a year.
British Friendly chief executive officer Mark Myers says: “By removing all financial underwriting, we are giving advisers an alternative option to recommend to their clients, particularly those who have fluctuating incomes, to provide both simplicity and certainty.
“Policyholders can be confident that, when they claim, they will receive the cover they have paid for as no deductions are made for existing benefits such as sick pay, other insurance payouts or state benefits.”
In June, LV= launched a similar simplified protection product called sick pay insurance, which covers clients for up to £1,000 a month.
London & Country associate director of communications David Hollingworth says: “There is a perception that protection is complicated so simplifying the process has benefits, but most of the time with simplification you are giving up some of the robustness of the product.”