Pioneer is looking to offer financial underwriting at application rather than at he point of claim to all its income protection applicants.
It offers financial underwriting at application to people in low-risk occupations with its professional income protection plan and aims to extend this to all occupation classes, including high risk.
Financial underwriting at application ensures that a policyholder gets the amount of insurance they pay for. Some income protection providers financially underwrite at the point of claim which means that a policyholder may get less if they are earning less at that point.
Premiums are expected to be guaranteed. The firm launched the Pip plan in July which guarantees premiums.
Chief executive Andy Chapman says: “Pip gives people the certainty that if they have bought £100,000 of cover, they will get it, even if they are earning less at the point of claim. We believe that this has got to be good for everyone, not just professionals.”
Master Adviser senior partner Roy McLoughlin says: “This is a great idea. Anything that shines a positive light on income protection is fantastic.”