View more on these topics

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


Replacement business costs St James&#39s Place £250k fine

St James&#39s Place has been fined £250,000 by the FSA for serious breaches of monitoring and record-keeping requirements relating to replacement business. The action refers to recommendations to customers made by the firms&#39 appointed representatives to surrender and replace existing investment contracts arranged by competing providers, a process referred to as a replacement sale. The […]

New trust from new company

New Scottish fund management company Edinburgh Partners has established the EP global opportunities trust, an investment trust that invests in undervalued companies around the world. Edinburgh Partners was founded earlier this year by Sandy Nairn and Graham Campbell, who previously worked together at Scottish Widows Investment Partnership. They will be the lead managers of the […]

Leeds & Holbeck – 25-Year Fixed Rate

Type: Fixed-rate mortgage Fixed term: Until March 1, 2029 Fixed rate: 5.99% Minimum loan: £25,000 Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £500,000 Income multiples: Up to 90% […]

Chelsea launches children&#39s saving account

The Chelsea Building Society is launching a new children&#39s account available at 4 per cent gross pa. It will offer instant access with a minimum opening balance of £1 with a maximum of £5000.


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