The provider said Friendly Shield is designed in response to adviser feedback to support stretched household finances from unexpected accidents in an affordable way to make life a little easier when things go wrong.
Its pricing structure aims to be both affordable and simple and is targeted at individuals who may struggle to afford traditional protection products or who do not have a need for full income protection.
Designed to provide a number of protection benefits to help protect individuals against unexpected accidents, it offers an income benefit, fracture cover, hospitalisation benefit, and both natural and accidental death benefit, plus a rehabilitation benefit to help policyholders get back to work sooner.
The policy also allows for multiple claims at the same time should policyholders need to claim more than one benefit as a result of their injury. For example, a leg fracture might necessitate an emergency hospital visit, qualify for fracture benefit, and result in a claim because they cannot work for more than 14 days.
Friendly Shield offers a three-level structure that requires no medical or financial underwriting with a price that is standard for all ages from 18-50, across all accepted occupations. The new product covers, per policy year:
- Hospital cash: a cash benefit of £50 per night for any covered accidents for up to 360 days
- Fracture cover: a lump sum benefit for fractures of bones up to £3,000
- Income benefit: short-term accident-only income benefit up to £2,250 per month for up to three months
- Accidental death benefit: a lump sum payable upon accidental death up to £85,000
- Natural death benefit: a lump sum payable on any cause of death of £2,500 after a 2-year qualifying period
- Friendly GP: 24/7 access to a virtual GP for the whole family from the policy’s opening
- Rehabilitation benefit: a payment of up to £1,000 providing access to private facilities covering physical therapies such as acupuncture, physiotherapy, osteopathy and chiropractic treatment, follow-up scans, and tests and consultations.
The amount of cover received depends on which one of the three tiers is selected: bronze, silver or gold with premiums starting from £10 a month, or 33p a day.
The policy also provides cover for the whole family providing policyholders with the option to add a spouse and children at a small additional cost.
It can be added as a rider to existing policies or can be sold standalone.
When asked by Health & Protection about issues raised by advisers, National Friendly pointed to affordability, accessibility and simplicity concerns around standard long-term income protection policies.
Consequently, the policy has been designed to meet the needs of customers whose budgets are often stretched by mortgage or rental payments, while its emphasis on simplicity, as it is not linked to income, aims to allow for quick access to cover and with some customers having just been through a long mortgage application process, the product also aims to facilitate cover for everyday risks in an affordable and simple way.
Graham Singleton, CEO at National Friendly, (pictured) said: “Brokers have told us they want a quick, non-underwritten, cost-effective suite of benefits with minimal exclusions to help members cover the unexpected that’s not covered by a standard long-term income protection policy.
“This is especially important to brokers with mortgage and renter clients.
“We believe that Friendly Shield will appeal to most individuals aged between 18-50, providing essential peace of mind should the unexpected happen for a very affordable price.
“While core inflation may be falling, the cost-of-living crisis is still affecting UK households, with ONS reporting that 55% of adults in May 2024 felt an increase in their household expenses compared to the month before.
Friendly Shield gives advisers an alternative and viable product for when traditional protection products may not be needed or perceived as too expensive helping them to serve more needs and keep more clients protected.”
Ian Sawyer, commercial director at Howden Life & Health, said: “National Friendly’s Friendly Shield product is a welcome addition to the market, helping clients see off the initial impact of accidents.
“Its innovative design and simple structure will resonate with clients who seek an affordable and quick solution.
“With Friendly GP providing immediate family access to much needed GP services, the policy will have an impact on lives from day one.”