View more on these topics

Healthy IP options from PruProtect

PruProtect, the joint venture between Prudential and South African company Discovery, has launched an income protection product with an own occupation definition of disability for all occupations.

The plan has two types of cover. Primary cover is the lower-cost option, so its benefits are more limited than the comprehensive cover.

The maximum cover under the primary option is 50 per cent of earnings up to a £90,000 maximum, while for comprehensive cover it is 60 per cent of earnings for the first £30,000 a year, then 50 per cent of earnings up to a maximum of £150,000.

Both options include recovery benefit, which provides specialist support and treatment from selected providers. The maximum for this is £1,000 for primary cover and £2,000 for comprehensive cover.

To encourage people to get back to work, both options also provide a back to work benefit. For primary cover this is 25 per cent of monthly benefit in the first month and 10 per cent in the second. This rises to 50 per cent of monthly benefit in the first month and 25 per cent in the second with the comprehensive cover.

Both options allow a choice of guaranteed or reviewable rates and premiums can also be reduced through the Vitality health programme, where points are awarded for healthy lifestyles. The programme also provides discounts from a range of companies, such as subsidised gym membership, health screens and Eurostar travel.

A choice of level, decreasing or index-linked cover is available alongside usual features such as guaranteed insurability and houseperson’s cover.

Unemployment cover from St Andrews Insurance is provided at an extra cost and there is a range of deferred periods, including seven days for self-employed clients. Payments to self-employed clients are backdated to day one in the event of a claim for deferred periods of seven days and one month.

This plan appears to offer advisers what they want for their income protection clients, with innovative features such as the recovery and back to work benefits. However, primary cover inevitably has some limitations compared with comprehensive cover. There is no waiver of premium and guaranteed insurability is limited to a change in salary following promotion or changes to a mortgage.


Chris Cummings

Aifa director general Chris Cummings is a great believer that you should study history to avoid making the same mistakes as your predecessors. In fact, he is even contemplating studying for a PhD in the philosophy of regulation and has written his thesis proposal.

Chaos theory

If I had to compile a list of the most pointless financial adverts of all time, Scottish Amicable’s Captain Chaos TV campaign would be right at the top.

Rest assured

I have recently been diagnosed with multiple sclerosis and am concerned about what pension benefits I am going to be able to leave to my wife. Can you advise me?


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