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Pioneer improves Professional Income Protection (PIP)

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PIP is aimed solely at professionals and those in low risk occupations with policy benefits.

 

Pioneer says the changes reinforce its commitment to develop simple, transparent and saleable income protection plans.

 

The maximum benefit increases from 40 % to 50 % of gross income with an option to allow customers to choose between financial underwriting on acceptance or at the point of claim.

 

Customers can also fix the benefit amount at the point of claim and the policy does not deduct state benefits.

 

Pioneer is aiming to widen its market base and to do so is lowering the salary level necessary to qualify for a policy to £20,800 from £26,000.

 

The insurance option can also be increased on a marriage or civil partnership, the birth of a child, or if a mortgage is increased on the primary residence.

 

While every three years there will be a check to ensure the benefit cover is in line with the member’s income.

 

Cover can also be suspended to cater for long-term career breaks to cover a continuous period of 36 months.

 

Pioneer’s Richard Wyatt-Haines says: "In the current economic climate, protection and financial security are high on the consumer’s agenda. With these latest enhancements to PIP, we are proving our willingness to innovate and develop open and transparent protection products."

 

Paul Wood, at Pioneer, adds: "By introducing underwriting at claim or acceptance, a feature unique to PIP, Pioneer is looking to overcome a common objection relating to disputes at claim and subsequent questions of good faith relating to the industry. PIP’s low premiums should also enable customers to get a quality, low cost alternative."

   

Income protection insurance: News update: October 2008

 

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