Cirencester Friendly Society’s new Income Assured Plus plan offers a choice of either pure protection only or a protection and investment option. The product is known as a Holloway plan, after Stroud MP George Holloway who pioneered the concept in the 19th century.
The plan is available to UK residents from age 16 to 60 and runs to a selected retirement age of 50-65.
The maximum benefit is 60% of gross income up to a maximum of £40,950 a year. Deferred period options are from day one or 1, 4, 8, 13, 26 or 52 weeks. Inflation proofing is available too.
Cover is bought in units, with a minimum of five units. Each unit buys £10.50 a week of benefit, with the cost depending on age, deferred period and whether the accident protection and investment options are required. Premiums are not dependant on sex, occupation or smoking status.
An accident protection option pays benefit immediately following an accident, and waiver of premium benefit is included too. In the event of terminal illness, up to six months’ benefit can be claimed as a lump sum.
At age 31-35 a customer would pay £0.92 a month for a four week deferred unit, while a 13 week deferred unit would cost £0.67 a month. Premiums increase as you get older.
Health and life insurance: News update: February 2007