Scottish Equitable has introduced a menu style protection plan for individuals and their families that includes critical illness, life cover and permanent total disability.
Premiums are based on age, sex and smoking status and cover is available on a single or joint life basis.
The critical illness part of the plan covers 26 conditions and pays a lump sum if policyholders or their children are diagnosed with one of the conditions during the benefit term they have chosen. As an alternative to a cash lump sum, a monthly income is paid out if the policyholder opts for the critical illness family income benefit.
The plan allows policyholders to set the benefit on a fixed term basis or they can choose to it can be renewed every five or 10 years.
Individual personal protect plan has the flexibility to meet the changing needs of policyholders as it enables them to take the basics of cover then add on extra benefits at a later stage.
However, the menu approach is flavour of the month and the plan could face competition from companies like Friend's Provident, which recently introduced its select plan to the individual and family protection market.
Critical illness cover only for a 30-year-old non-smoking male on a £100,000 sum assured over a 25 year term would be £17.10 a month with the Scottish Equitable plan. Under the Friends Provident Select plan on the same terms, the monthly premium would be £21.52 a month.