Friends Provident is making a push for the online protection market with the introduction of the e-IFA term protection plan.
The product is a level term assurance plan which is only available via IFAs on the internet.
e-IFA term protection has been developed in conjunction with business software company Allfinanz. Applications are processed online, with no need for medical tests or reference to medical records.
Applicants can choose a term of between five and thirty years. For applicants up to the age of 55 the maximum amount of cover is £250,000, while for those aged between 55 and 60, the maximum is £100,000.
Friends Provident is making a sustained push for the online IFA market. It feels that this product will appeal to IFAs and their customers, cutting down on the amount of paperwork, administration needed and the time taken to process an application. Paper will still be required, however, to process customers' cheques and direct debit mandates.
Although the paper-free element can be attractive to many people, the use of the Internet for financial products is still quite small due to fears about credit security as well as the reliability of the software required.
However significant savings are available to customers using e-IFA protection. Based on a non-smoking male aged 30 next birthday in good health for a sum assured of £100,000 over a ten-year term, the e-IFA protection plan would cost £6.70 a month. Friends Provident's conventional level term assurance plan would cost £7.50 a month on the same basis.