Pioneer Friendly has a new short-term income protection plan that pays benefits for up to one or two years only (12 or 24 months maximum payout). It is designed to cover regular bills such as mortgage or rent, council tax, loans and utility bills rather than fully replace income. Benefits are selected in multiples of £100 a month, between £500 and £1,000. Each year the level of cover is increased annually in line with the Retail Prices Index (RPI), with premiums rising by the same amount, on top of any age increase.
No proof of income is required at outset or when claiming. The plan uses an “essential and majority of duties” disability definition. It uses tele-underwriting and is a very simple product. Not available to all occupations, and offers no unemployment cover.