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Holloway goes universal



Type: Individual income protection plan

Minimum benefit/premium: £50 a week/£2.13 a month

Minimum-maximum ages: 18-65

Deferred periods One day, 4, 13, 26 or 52 weeks

Definition of disability: Own occupation

Options: choice of retirement ages 50,55, 60 and 65
Commission: 150% of Lautro, 157.5% of Lautro for online

Tel: 0800 716654

Holloway Friendly Society&#39s new classic plan is an income protection
plan that has no premium loadings for occupation, gender or
smoking. An own-occupation definition of incapacity applies for the
whole term and full benefits are payable for up to 52 weeks, after
which they are reduced by 50 per cent.

Peter Pickup IFA principal Peter Pickup thinks this product&#39s best
feature is that a policyholder&#39s occupation, gender and smoking
status does not affect premium rates. He says: “Demand for private
health insurance, or income protection, is still strong. This plan is
ideal for high-risk occupations and smokers.”

Pickup also highlights the plan&#39s good choice of deferred periods,
which apply even to high-risk clients such as smokers and those in
hazardous jobs. He particularly likes the ability to select cover from
day one and points out that because it has no loadings for high-risk
clients, this plan&#39s premiums are good.

However, Pickup can also see some drawbacks. He says: “The
investment element can be a negative because it involves paying for
something some clients may not want. Also, the 50 per cent
reduction in benefits after 12 months may not suit all clients.”

Looking at the likely competition the Holloway plan will face, Pickup
suggests other friendly society plans that offer an investment option
and plans that do not rate clients according to occupation. He also
thinks plans that do not reduce benefits after 12 months will compete
with Holloway Friendly Society&#39s offering.


Suitability to market: Good
Flexibility: Average
Premium rates: Average
Adviser remuneration: Average
Overall 8/10


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