Friends Provident has removed the HIV/AIDS and war exclusions on its Individual and Executive Income Protection products, making it the first UK life assurance firm to ditch all standard exclusions on income protection benefits throughout the range.
As part of a number of improvements, the period of linked incapacity during which any deferred period can be waived has also been extended from 6 to 12 months to provide support for those trying to return to work.
In addition, more generous benefit limits for higher earners have been introduced, with the Individual Income Protection product now providing up to £3,000 a year more for those on an annual salary of £100,000.
Meanwhile, the maximum monthly benefit available has been increased from £10,400 to £13,000.
Mark Jones, protection manager at Friends Provident, says: "We’re constantly evaluating our range to make sure it reflects the latest social, economic and medical circumstances and offers value for customers."
The new benefit formula for the Individual Income Protection product is as follows:
70% of the first £10,000 a year of ‘pre-incapacity’ earnings, plus
60% of the next £20,000 a year of ‘pre-incapacity’ earnings, plus
50% of the next £120,000 a year of ‘pre-incapacity’ earnings, plus
40% of ‘pre-incapacity earnings’ over £150,000 a year
Previously, the formula was as follows:
70% of the first £10,000 a year of ‘pre-incapacity’ earnings, plus
60% of the next £20,000 a year of ‘pre-incapacity’ earnings, plus
50% of the next £40,000 a year of ‘pre-incapacity’ earnings, plus
40% of ‘pre-incapacity earnings’ over £70,000 a year
Now in its 175th anniversary year, the insurer was founded on Quaker principles and aimed to alleviate the hardship of families facing misfortune. The majority of Friends Provident’s new protection business is transacted online.
Income protection insurance: News update: February 2007
