The “Breathing Space” product will available to UK financial advisers from today and has no financial underwriting (either at application or claim stage) and no automatic exclusions.
Other key product features include a long-term contract that can run to a maximum age of 65, own occupation cover and a claim can be made after being unable to work for four weeks
Mark Myers, CEO of British Friendly, said: “By removing all financial underwriting we are giving advisers an alternative option to recommend to their clients, particularly those who have fluctuating incomes, to provide both simplicity and certainty.
“Policyholders can be confident that when they claim they will receive the cover they have paid for, as no deductions are made for existing benefits such as sick pay, other insurance pay-outs, or state benefits.”
The new product has also been welcomed by the industry.
Roy McLoughlin, IFA at Master Adviser, said: “This product feels like a breath of fresh air. Circumnavigating the onerous task of financial underwriting means that this product feels very accessible which is crucial within such a mandatory part of protection.”
McLoughlin’s sentiments were echoed by Alan Lakey, partner at Highclere Financial Services.
He said: “Pursuing the ‘simple’ design with easy to understand terminology is the aspiration of many insurers.
“Breathing Space provides simplicity with sound design and client choice which will enable an increased take up of the often ignored but nonetheless vital income protection.”
Myers added: “Adviser feedback suggests the new Breathing Space cover will appeal to a wide range of people including manual workers, the self employed and part-time workers, to provide a cash boost to cover the bills in the event of being unable to work due to ill health.”
