British Friendly has launched level guaranteed premiums on its short and long-term income protection Protect product as a new, second premium option in addition to its existing age-costed guaranteed premiums.
The mutual has also made a number of other policy updates including to its benefit guarantee, sick pay protection and improved guaranteed insurability options.
The level guaranteed premiums being introduced remain constant and unchanged throughout the term of the policy unless a customer selects the indexation option, which ensures cover changes in line with any increase in the cost of living.
British Friendly has also added a benefit guarantee to Protect of up to £1,500 per month to provide greater protection for customers who experience a genuine drop in income prior to making a claim.
The mutual has introduced sick pay protection for teachers, dentists, doctors, surgeons, nurses and midwives to support public sector customers where sick pay can change with length of service.
It has reviewed the limits on its guaranteed insurability options. In addition, it now no longer considers state benefits as continuous income at point of claim, providing greater flexibility for customers throughout the policy lifecycle.
Finally, the mutual has overhauled the Protect policy literature to make it simpler and more accessible for vulnerable customers.
Mark Dennison at adviser firm LightBlue UK said: “The new level guaranteed premiums are a welcome addition to the range of premium options British Friendly offers because it means the adviser can offer price certainty.
“It also can be a better fit for people in higher occupation classes such as office-based workers or professionals who might be buying or already own their own home.
“Plus, when taking out or increasing a mortgage, interest rates and future repayment charges will be very much on the forefront of the customer’s mind and certainty of price for their protection cover will help during the sale.
“While, for those on a tight budget we’re pleased that age-costed premiums will still be available as an alternative option.”
Claire Kelly, proposition director at British Friendly, (pictured) added: “Now more than ever before we need to try and help advisers by giving them greater choice and flexibility to discuss income protection with a wider range of customers.
“With that in mind we have enhanced Protect to allow varying options so that advisers can tailor the product to their customers’ needs through a single product design.
“The combined approach of greater options being made available alongside our inclusive approach to underwriting hopefully means income protection can be more accessible for customers. We want to make sure we can provide certainty and greater everyday value to customers.”
