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Pru lifting commission on severity-based plan

PruProtect is offering an extra 20 per cent commission on its severity-based critical-illness cover product.

It says the enhanced commission, available until June 30, aims to reward advisers for taking time to familiarise themselves with the product, which launched last September.

The product covers 154 illnesses and offers payouts between 10 and 100 per cent of the sum assured, depend- ing on severity. It also allows policyholders to reduce their premiums by adopting a healthier lifestyle.

PruProtect has reduced its rates, which it admits were uncompetitive, and revamped its online system after experiencing logjams. It has published new literature for advisers on the product.

Chief executive officer Shaun Matisonn says: “We want to recognise the investment that advisers have to make to familiarise themselves with our product and reward them accordingly.”

CBK Colchester principal Peter Chadborn says: “A product as comprehensive as this requires a fair amount more work and if that is a barrier to IFAs learning about it, then boosting commission is a good thing, provided it does not end up the main reason for a recommendation.”

PruProtect will announce sales figures alongside Prudential’s results later this week. Industry research from Lifesearch predicts a grim year for new-style products, with only 15 per cent of providers expecting them to sell well in 2008.

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