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Holloway revamps golden oldie

Holloway Friendly Society has introduced the new classic plan, a
revamped version of its classic income protection plan.

Holloway Friendly Society hopes the plan will help IFAs write new
income protection business and make income protection more
accessible to people who may be put off by the costs of policies
which have higher rates for smokers, women and some occupations.
The new classic plan provides cover of up to 60 per cent of earnings
subject to a maximum of £36,400 a year. There is a choice of day one
cover or deferred periods of four, 13, 26 and 52 weeks. There are no
loadings for occupation, gender or smoking.

At the outset, policyholders specify a retirement date and pay the
premiums until that date, otherwise early redemption penalties will
be incurred.

An own-occupation definition of incapacity applies for the whole term
and full benefits are payable for up to 52 weeks. After that period
reduced benefits of 50 per cent apply but full benefits will be
reinstated where there is no claim for 12 months. Benefits can be
index-linked at no extra cost and a tax-free lump sum is built up which
is paid when the policyholder retires.

Pioneer Friendly Society&#39s income protection plan is a similar plan
that also offers a tax-free lump sum at retirement with no loadings for
woman or smokers. Comparing premium rates, a 30-year-old
housewife who requires £413.40 in benefit on an index-linked basis
with a retirement age of 55 and a deferred period of three months
would pay £10.07 with Pioneer Friendly Society and £12.82 with the
Holloway plan.

However, the extra cost of the Holloway plan may be explained by its
use of the own occupation definition of incapacity, whereas the
Pioneer plan switches to a suitable occupation definition after 12


LivVic delivers income

Liverpool Victoria has introduced a with-profits income bond with an initial bonus rate of 4.25 per cent. The bond is for single premiums from £10,000 to £500,000 and has a minimum 100 per cent allocation for most clients. It features an MVR-free guarantee on death and a two-year smoothing policy so investors are not affected […]

Product matters

Is it always bad luck to walk under a ladder? Supposedly it is but as yet I have not had a bucket of water dropped on me. Anyway, looking at the recently launched HSBC Ladder plan, will something unpleasant fall on my head? Structured products are getting more competitive and launching a boring 100 per […]

IFAs don&#39t deserve trail commission, says Money Portal

The vast majority of IFAs do nothing to earn their trail commission and they should have it taken away by product providers, according to retail fund distributor The Money Portal. Managing director Richard Craven, who is currently in talks to buy a number of IFA companies, says product providers should pay only up-front commission to […]

Direct-offer transfer service from ScotEq

Scottish Equitable has set up a direct-offer transfer process aimed at minimising the time and effort that advisers put in to completing a pension transfer and helping them to access a potential £1bn market. ScotEq says the adviser and employer become facilitators for the process, with the company shouldering the workload. It is providing a […]


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