The new IP products offer a choice between compre- hensive cover and cheaper primary cover.
They 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 evidence of policyholders’ earnings is given at the application stage, then no further information about their salary is needed before a claim.
State benefits are not deducted under the plans, and policyholders have access to an online state benefits calculator. For self-employed clients, there is a seven-day waiting period before a payout.
The difference between the two income protection plans is the level of cover, which varies on back-to-work benefit, recovery benefit and percen- tage of salary.
The extension of life cover to include people 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: “It is really positive news to see innovation in the individual income protection market. It is likely to have an impact on market practice and looks like a very saleable plan.”