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.