Income protection provider Best Insurance has launched a short-term accident, sickness and unemployment (ASU) policy.
Called InstaProtect, the policy has no exclusion periods and simplified medical underwriting terms.
InstaProtect is the first of its kind to withdraw the 90-120 days initial exclusion period typically imposed by insurers for unemployment protection.
The product's back-to-day-one waiting period is a standard part of the policy, paying claimants immediately from day of purchase.
The accident & sickness cover requires GP rather than consultant sign-off for all types of claims.
The policy is available to a wide range of people providing they’ve paid their Class 1 National Insurance contributions and work for more than 16 hours per week or 70 hours per month.
Policyholders must be aged between 18 and 55 with no major ailments who have been permanently employed for 12 months.
Its maximum benefit is 60 per cent of gross income or £2,000, payable for 12 months.
The policy also has a critical illness element, making a one-off £2,500 payment to claimants who develop a qualifying condition.
Best Insurance director, Kesh Thukaram, said: “Insurers have become lazy and fail to meet customer expectations; offering cover to suit them rather than the people it’s intended for.
"Workers have instant cover when they buy home, motor, pet and travel insurance, so why not with ASU?"
Alan Lakey, founder of CI Expert, said: "First impression is that this is a very welcome innovation.
"I’ve never previously seen a Day 1 redundancy plan. As stated, many insurers devise plans that fail to meet the reasonable requirements of consumers and this appears well thought out.
"The plan details are not available on the site yet so I couldn’t look at the minutiae, so I assume it is only available as an all-in plan.
"If the redundancy portion is available as a stand-alone plan this would prove extremely useful. Many clients are ineligible for sickness cover as they are already covered by their employer and only want the redundancy portion.
"I cannot comment on the critical illness part as it is the claims wordings which determine value. However, any cover is better than none at all."