Free extra life cover offered by PruProtect
PruProtect will give IFA clients more cover at no extra cost in a bid to close the UK’s widening protection gap, its product and actuarial director has claimed.
Deepak Jobanputra said that clients taking out a life and serious illness cover plan between 18 June and 30 September would automatically be given an additional 30 per cent of life cover free for three years through PruProtect’s cover booster.
After the three-year period customers will be given the opportunity to continue with the extra cover with no further underwriting and will be charged a discounted premium of up to 15 per cent, based on their vitality status.
Mr Jobanputra said: “With the UK protection gap now estimated at £2.4 trillion, much more needs to be done to encourage consumers to take out cover and consider their needs in a broader context than perhaps simple debt protection.
“We want to make it easier for customers to get the cover they need by providing extra cover for free upfront, often when budgets are most constrained.
“IFAs are best placed to deliver appropriate protection solutions to consumers.”
The news came as PruProtect cut its income protection cover premiums by up to 25 per cent, following a review of its entire suite of products.
The policies are only available with own-occupation cover. Benefits include back to work booster payments and dedicated rehabilitation and support funds.
Max Horne, partner of Fife-based Max Horne Financial Services, said: “The cover booster gives inflation protection. I would say take the cover for three years and if PruProtect will continue the cover without underwriting, it’s a great idea.”