ProtectionJul 9 2015

Friends Life updates income protection proposition

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Friends Life updates income protection proposition

Friends Life, now part of the Aviva Group, has upgraded its Protect+ income protection proposition with guaranteed benefits, a professional development guaranteed insurability option for those who receive significant pay rises and therapy benefits of up to £200 per year.

The firm has increased the guaranteed benefit from £1,300, up to £1,500 a month.

If a reduction in earnings means the customer’s benefit entitlement drops below what they originally insured for, they will be paid the lower of the original sum assured and £1,500 per month.

For customers where their maximum benefit is more than £1,500 a month, but their earnings drop by less than 10 per cent, Friends Life will now pay the full benefit for the duration of their claim -previously the full benefit would only have been guaranteed for up to 12 months.

Recognising that many customers are employed in professions where they are likely to make a lot more money over time, if customers’ earnings increase by more than 20 per cent as a result of career progression, they can now make a one-off increase of their annual benefit of up to a maximum of £20,000 a year, without the need for new underwriting.

Finally, the therapy benefit is now contractual and customers can claim up to £200 per policy year for physiotherapy, osteopathy and visiting a chiropractor - covering 100 per cent of the cost.

Louise Colley, managing director for protection at Aviva, said the changes are part of trying to make income protection as attractive as possible for potential customers.

She said: “Only last month, our own research showed that more people have pet insurance than income protection and critical illness cover combined so we have to boost the profile of these important products as they can really support families when they need it most.

“I hope changes like the ones we are announcing today, coupled with the great work being done by the Seven Families campaign, really raise the awareness of income protection among advisers and the general public.”

peter.walker@ft.com