Reliance Mutual is today launching an online direct-to-consumer basic protection plan and life insurance policy.
The “There-in-One Plan”, which is part of its new brand There, covers life insurance and basic income protection through one set of underwriting questions.
Customers will be able to set their cost and level of cover with the help of online sliders.
Pricing varies depending on a range factors. For example, a 50 year old IFA who wants a lump sum of £50,000 upon death and income protection of £1,000 a month will pay £37.15 per month.
The “Too ill to work” protection policy pays out a maximum of £1,250 for 60 months, with payouts starting one or three months after someone is unable to work.
Policyholders must be under 65, earn more than £4,800 a year and work more than 16 hours a week to qualify. They do not have to inform the mutual if they change jobs but if they leave voluntarily the policy is invalid. In most cases customers will need to answer 11 health and lifestyle questions.
Reliance Mutual chief executive Mark Goodale says: “Innovation in the industry has been stifled by a number of factors including an institutional mindset, cumbersome legacy systems and, to some extent, regulation.
“Our approach has been a radical one, starting with a blank piece of paper and looking at what people need rather than what is easy to sell.”
There head of member recruitment Clive Allison says: ”So many people don’t have protection in place and are failing to insure themselves, yet they wouldn’t hesitate to insure their belongings. We understand that this is often because life simply gets in the way, there is so much jargon and many products seem complicated. This is a dangerous combination as paralysis can set in, with people often doing nothing, which is the worst thing.”