Goodfellows has established IncomeInsurance, an accident, sickness and unemployment policy for a mortgage or any other purpose.
IncomeInsurance was designed in response to a survey by the British Association for Protection Brokers. It found half of UK workers do not have savings or insurance to fall back on if they were unable to find a job within a month of redundancy.
Unemployment cover under IncomeInsurance costs £3.50 per £100 of monthly benefit and disability cover is available at the same rate. Unemployment and disability cover is more expensive at £5.50 per £100 of monthly benefit.
In the event of a claim, IncomeInsurance pays out up to £1,000 a month or 50% of gross monthly income, whichever is lower. There is a deferred period of 30 days and benefits are paid for up to 12 months.
Goodfellows is pitching IncomeInsurance as a flexible policy because it is not tied to a mortgage or personal loan. However, it is not unique as Berkeley Alexander's safetyNET policy does the same job.
Berkeley Alexander's plan offers more options than Goodfellows, with a benefit period of 12 or 24 months and a waiting period of either 30 or 60 days. Policyholders can link the product to their mortgage, which reduces the premiums.
However, the wider income protection option provides the closest comparison with the Goodfellows policy and shows Berkeley Alexander is cheaper. It provides up to £1,500 a month or 66% of gross income, which is a higher level of benefit than the Goodfellows plan. Under the Berkeley Alexander plan, unemployment cover with a 30-day waiting period and a benefit period of 12 months costs £3 per £100 of monthly benefit Disability cover A combination of the two costs £5.25 per £100 of monthly benefit.