Cirencester Friendly has launched an income protection product which it describes as a ‘new concept’, with flexible features such as the ability for advisers to suit the own occupation cover to client needs.
My Earnings Insurance took 18 months to develop and launched on Monday (11 August), with its first application arriving today.
Speaking to FTAdviser, the friendly society’s sales and marketing director John Bridge, said that it has many features that other IP products do not include, which makes it a “more flexible product”.
Features include the ability for financial advisers to tailor the ‘own occupation’ cover to suit clients; annual escalating or level premiums, which are both guaranteed; day one cover or a choice of 4, 8, 13, 26 or 52 week deferred periods; and ‘serious injury cover’, which combines day over cover for a series of injuries with a longer deferred period for illness.
In addition, it has a ‘terminal illness’ benefit that pays a lump sum following a death diagnosis within the following 12 months, in addition to regular benefits continuing until death. It also offers 65 per cent earnings cover and the ability to have split deferred periods. The length of time is unlimited, meaning this can last until a retirement date or death.
This is the first direct launch from Cirencester Friendly. Previously it offered Holloway’s income protection products, which had restrictions, although this will continue.
Mr Bridge said that all advisers who sold Holloway products had to be CF30 regulated as there is an investment element, which is savings, built into the product.
He said: “Now we will be able to market this product to mortgage brokers, insurance brokers etc, so we are doubling the potential market we can sell to. We prefer people to go through a financial adviser rather than direct.
“There will be other products launched in the next two to three years that probably won’t be income protection. It is prudent to increase the range into other products.”
Mr Bridge added that Cirencester Friendly has seen a 20 per cent growth in income protection sales in the first quarter of this year, when compared to the same period in 2013. It has also paid out 94 per cent of claims.
