ProtectionNov 21 2014

Reliance Mutual launches online protection

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Reliance Mutual has launched an online protection product called the There-in-One Plan, offering “two covers in one” with one set of underwriting questions, Mark Goodale has announced.

The chief executive of the mutual said: “Innovation in the industry has been stifled by a number of factors including an institutional mindset, cumbersome legacy systems and, to some extent, regulation.

“Our approach has been radical, starting with a blank piece of paper and looking at what people need rather than what is easy to sell.”

Its Too-ill-to-work and Life insurance cover allows customers to set the cost and level of cover based on what they can afford, and get an immediate price.

The Too-ill-to-work cover, which was designed to cover the essentials rather than full income replacement, pays up to a maximum of 60 months’ worth of benefits.

Mr Goodale added that, in most cases, only 11 health and lifestyle questions were needed to gain instant cover, and said that the maximum benefit of £1,250 a month was one of the highest in the online direct-to-consumer market.

Adviser View

Ian Gwinnell, director of Staffordshire-based All Counties Financial, said: “The problem with direct-to-consumer is, how do they know if the cover is sufficient or appropriate for the client and that they understand the terminology used?

“If it had a 30-day deferment period, it would be beneficial; if any longer than that, it would have no value at all to the client.”