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NDF joins the cafe society

NDF Administration has entered the protection market after stockmarket uncertainty dulled people&#39s appetite for investment products. Its first offering, Home Protect, is a cafeteria-style protection package that brings together a range of products from other companies.

Prudential has been chosen to provide term insurance, critical-illness cover and the sickness and accident element of mortgage payment protection insurance. The unemployment element of MPPI is provided by Hamiltons while buildings and contents insurance is provided by Teachers Assurance.

A condition of the product is that at least £10,000 of life cover must be taken out alongside any other element chosen by the policyholder.

IFAs think Home Protect may be a launch pad for NDF to offer other packaged protection products. They say the protection market is very premium-driven but cafeteria-style products are difficult to compare on this basis. As a result, IFAs may be more likely to put together their own package for clients after comparing prices on quotation systems such as The Exchange.

A 30-year-old non-smoking male requiring stand-alone critical-illness cover on a £100,000 sum assured over a 25-year term would pay £13.03 with NDF in the first year but premiums increase almost every year during the term.

IFA Guy Jones of Berwick Devoil Healthcare likes the concept of Home Protect and thinks its critical-illness premiums are initially cheap. But he thinks it is expensive in the later years. For example, the monthly premium for year 25 would be £45.73 based on current rates. The same cover on the same basis with Scottish Provident would currently cost £25.17 a month but premiums would not increase annually. For clients who do not need the £10,000 life cover, premiums would reduce to £23.45.


IFA launches Sipps with property deal

IFA Central Financial Planning is offering a new service aimed at giving its pension customers access to commercial property investment through their pension fund.The Property Through Pensions service is aimed at business owners seeking to buy their own business premises and private investors who are looking for exposure to commercial property as an alternative pension […]

Spending spree leaves homeowners lacking cover

Homeowners are drastically under-insured as a result of a consumer spending boom, says a survey by Charcol Insurance Brokers.The survey reveals that over the last 12 months, 48 per cent of UK homeowners have bought major items for their homes. Despite this, 61 per cent have not reviewed their insurance cover over the same period.A […]

Abbey helps smooth the way for first-timers

Abbey National has helped to publish a Rough Guide to getting a foot on the property ladder.The Rough Guide to Buying Your First Home warns first-time buyers about the pitfalls of the housebuying process. It covers everything from planning finances to dealing with estate agents and solicitors.Abbey says Easter typically heralds the start of the […]

&#39IFAs caught in FSA and FOS rules trap&#39

The Financial Ombudsman Service rules in favour of private investors far too often, according to Apcims. Speaking at an IFA conference in Geneva, chief executive Angela Knight said the FOS often forces advisers to pay compensation even though the adviser has acted legitimately, sensibly and ethically. She said there was no longer a level playing […]


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