The new IP products include comprehensive cover, a lifestyle protection
product, and primary cover, a cheaper alternative to the comprehensive
Both products allow clients to define their own occupation, include optional
unemployment cover, back to work benefits and allow advisers access to
details of underwriting decisions. If policyholder’s earnings are evidenced
at the application stage no further information about their salary prior to
claim is needed.
State benefits are not deducted under both plans, and policyholders have
access to an online state benefits calculator. For self-employed lives there
is a seven-day waiting period before they receive a payout. The difference
between the two IP plans is the level of cover, which varies on back to work
benefit, recovery benefit and percentage of salary.
The extension of its life cover to include people living with HIV, the first
of its kind in the UK market, provides £250,000 life cover over a maximum of
10 years for people who have started Highly Active Anti-Retroviral Therapy
treatment in the last five years.
Income Protection Task Force co-chairman Peter Le Beau says: “From a task
force perspective it is really positive news to see real innovation in the
individual income protection market. It is likely to have a real impact on
market practice and it looks a very saleable plan.”