View more on these topics

British Insurance backs flat rate for income protection

British Insurance has brought out an income protection plan that differs from many plans on the market in its flat rate premiums for all applicants.

The product is designed to protect a person’s income against the risk of unemployment and incapacity through accident or sickness. The majority of income protection plans calculate premiums on the basis of factors such as the nature of employment, age and sex, but this plan applies the same approach to premiums as accident, sickness and unemployment policies. Policyholders are charged £5 for every £100 of cover they require up to a maximum of £1,500 a month or 50 per cent of the gross monthly salary, whichever is lower.

To qualify for a claim, unemployment and incapacity must last at least 30 days, but unemployment claims cannot be made during the first 120 days of the policy. Benefits are paid out for a maximum of 12 months.

Under the terms of this policy, incapacity means a condition that stops a person from doing their own job, any similar job or any other job they are reasonably qualified to do. This is an any occupation definition, which is more onerous than some policies that have an own occupation definition.

Flat-rate premiums are a good idea for some people, particularly those in blue-collar work or professions regarded as dangerous or high risk who may find it more difficult to get affordable cover. However, like any policy, this one does have its limitations and some people may be able to get more cover through other plans such as Norwich Union’s Safe Guard policy. While premiums for this plan start at £10 a month and are calculated on an individual basis, the maximum cover is higher than Safety First at 60 per cent of gross earnings or £120,000 a year.

The definition of incapacity is also different as it depends on occupation. For some occupations, the definition will be based on the failure to complete at least three out of seven activities of daily working or suffering a serious illness, while for others the same definition as Safety First will be applied.


Aegon offers 5 for life

Aegon Scottish Equitable International’s 5 for life is a unit-linked investment plan providing people who are at or near retirement with a guaranteed income from the age of 60.

Pru retail sales are up but domestic business falls

Prudential delivered a mixed set of interim results, with double-digit growth in UK retail sales offset by a fall in the wider group’s domestic business. The firm reports that UK retail annual-premium equivalent sales increased by 11 per cent to £485m over the first nine months of the year compared with 2005. This was buoyed […]

Threesixty signs deal with The Insurance Surgery

threesixty has secured a deal with The Insurance Surgery offering its clients specialist risks insurance.The Insurance Surgery has sourced life insurance and other financial products for clients in special risk areas, such as pre-existing medical conditions and dangerous past-times since 1999.threesixty clients will be offered two service levels: a straightforward consultancy on a flat-fee basis, […]

Form of defence

For the next Adviser Fund Index rebalancing on November 1, 2006, panellists are concentrating on both risk levels and individual fund performance. Ben Willis, investment manager and head of research at Whitechurch Securities, has made a number of fund changes in his AFI portfolios, each relating to risk. In the cautious portfolio, Willis is moving […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm