Zurich UK has overhauled its income protection (IP) offering and made a raft of changes to its wider protection proposition including raising the minimum entry age to 18 for all products.
It has also updated exclusions for its multi-fracture cover and changed the application process for trusts.
Any quotes obtained for Zurich’s protection products before 11 March will be guaranteed for 30 days.
IP overhaul
For its IP product the insurer has cut the maximum age at entry to 59, in addition to increasing the younger age limit, while the maximum age at expiry is 69.
The minimum term permitted is five years with the maximum term being 52 years.
It has also changed to using a gross income replacement ratio measure instead of net income replacement to calculate the maximum monthly benefit.
A gross income replacement ratio will be used covering 65% of the first £60,000 of income and 45% of anything above.
Dividends will now be considered for customers who are company directors, including any dividends they receive themselves, and those paid to a spouse, civil partner or cohabiting partner that would cease to be paid if the life assured was to become unable to work due to illness or injury.
Maximum and minimum benefit guarantees have also been included. The minimum benefit guarantee has a standard guarantee of £1,500 and an enhanced guarantee of £3,000 for doctors, surgeons and dentists.
Other standard benefits include:
- Rehabilitation support through a return-to-work package and linked claims
- Sick pay matching for a wide range of medical professionals whose sick pay arrangement aligns to the NHS structure, irrespective of how many years of service they have completed
- Sabbatical cover, maternity, paternity and adoption benefit, own occupation guarantee and house person benefit
Optional benefits:
Its optional Income Protection Enhanced package is available at an extra cost and includes trauma benefit, hospital stay benefit and funeral benefit.
All three elements have been updated in financial amounts and terms of the benefits.
The multi-fracture cover and accelerate paid-for add-ons are also available.
Material changes
Zurich also said it had improved its materials and added situational examples to key fact documents to help illustrate how certain guarantees work to help with overall customer understanding prior to purchasing cover.
Previously these examples were only included in terms and conditions.
An animated video was also developed to help advisers demonstrate the value of income protection to customers.
It shows the difference in outcomes for someone who takes income protection versus someone who does not, after suffering a stroke.
Louise Colley, director of retail protection at Zurich UK (pictured) said: “By working with advisers to make changes that are relevant, we’ve created a proposition that supports customers with their life choices.
“Any cover needs to be reactive to changing scenarios and provide certainty.
“The sales support materials we’ve created are also designed to be really clear and help advisers to understand our features and benefits and who they are designed for, helping them to focus on the benefits of most value to each individual customer.”