The policy pays out on death or severe illness of a parent and is intended to cover the rising costs of state and private school education as well as university fees.
Deepak Jobanputra, actuarial and product director at PruProtect, said: “Even state education has associated costs of uniform, stationery, books and trips. This product in intended to give parents peace of mind that they can meet these costs whatever happens.
“There are 7.5 million children in state education in the UK currently and 628,000 children in private schools – that’s a huge market opportunity for advisers.”
PruProtect has also launched a range of other products including family income cover which provides a monthly benefit payment as opposed to a lump sum. The product is designed to cover monthly expenditure other than monthly mortgage payments.
Jobanputra said: “In 2009 just 20% of a family’s monthly costs went on the mortgage – this product is designed to take care of the other 80%.”
The provider has enhanced its whole of life cover to offer a guaranteed rate option, joint life second death option, and enhanced the rates of the proposition to make it more affordable.
It also said it will pay the same commission levels to advisers for whole of life plans as they do for standard term assurance.
PruProtect also launched a business protection policy and a relevant life policy for key persons in a business.
Peter Chadborn, IFA at Plan Money, said: “Many advisers incorrectly perceive business protection to be complicated but, in reality, the principles are the same as those that apply to personal protection. The fact that the PruProtect product is being backed-up by training seminars and dedicated support is great in terms of getting advisers to consider selling business cover.”
Finally, PruProtect also launched the “accelerator” option which reduces the client’s initial premium by up to 23%, with the premiums rising by 3% per annum thereafter. Clients engaging fully with PruProtect’s Vitality programme (a plan to improve one’s wellness by eating more healthily and exercising regularly) will be able to offset the 3% rises to their premiums and maintain the initial, low monthly payment.
Chadborn said: “It is a common conundrum that clients need the most cover when their disposable income is often lowest - when they are young and starting a family for example. This option will allow customers to choose the optimum level of cover whilst keeping their premiums affordable.”
