View more on these topics

Friends Life boosts IP cover for higher earners

Friends Life has increased the percentage of income customers can cover through its income protection policies.

The provider will now cover 65 per cent of the first £10,000 of a customer’s annual salary, and 55 per cent of all remaining income above that threshold.

Under the previous structure, Friends Life covered 70 per cent of the first £10,000, 50 per cent of the next £50,000 and 40 per cent of all remaining income.

The changes mean higher earners can protect more of their income, and advisers will need to consider only two tiers of client income as opposed to three.

Benefits in kind, such as company cars, accommodation and company-funded scholarships will now be included when calculating gross income. As a result, customers will be able to insure earnings that are not paid to them as salary.

Friends Life director of sales and marketing Mark Anders says: “IP is not only about covering the monthly bills, it is also about helping our customers and their families to maintain the lifestyle they have worked hard to achieve.

“These enhancements are designed to help our customers to do that.”

Friends Life is one of a number of insurers which has pledged its support for the Income Protection Task Force’s Seven Families campaign, which aims to boost consumer awareness of IP.


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