Income Protection  

British Friendly trials immediate income protection payouts

British Friendly trials immediate income protection payouts

British Friendly is trialling paying out the weekly benefit for income protection products before supporting evidence has been received.

The insurer said the trial of immediate support payments started in November 2017 and will run until March 2018 "on a discretionary basis".

The initiative applies to claims received on income protection policies that have been in force for at least three months.

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Andy Parker, claims and underwriting director for British Friendly, said 96.7 per cent of claims received by the insurer over the last 12 years have been paid but sometimes delays occur in receiving supporting evidence from medical professionals.

He said: "We feel it is unfair to penalise the majority of our claimants by making them wait to start receiving their income protection benefit through no fault of their own."

Emma Thomson, life office relationship director at Lifesearch, said: "The launch of immediate support payment is a great initiative from British Friendly.

"It is refreshing to see an insurer recognising that the vast majority of claims are valid and that customers shouldn't be penalised because of circumstances beyond their control.

"The main reason people take out income protection cover is to reduce the financial impact of incapacity so they need to receive their benefit quickly when they claim.

"This will hopefully lead the market in making sure payouts are not only made fairly, but made promptly."