Income protection provider Pioneer Friendly Society has launched a plan with ‘guaranteed benefit amounts’ that aims to counter widespread consumer mistrust over denied claims.
Like other policies, the medical underwriting for the Professional Income Protection Plan (PIP) is done upon application.
But in a departure from the norm, your level of income is also checked at the time of application so there is no discrepancy later on. And if your level of income drops during the policy, the initial benefit agreed to is still paid.
Andy Chapman, chief executive for Pioneer, says: “In general, consumers feel that insurance is a bit of a con and that providers make up the rules as they go along. This is something as an industry we need to sort out.”
PIP is available only to professionals and those in low-risk occupations. In order to receive certainty of claim, you must provide three payslips and a P60 if employed, or three years self-assessment and accounts if self employed.
Income protection: News update: July 2007