Traditionally, Holloway Friendly has offered income protection products that are age-banded.
This means that each year as you get older, the policy premiums increase at a guaranteed rate.
For some clients, this can be a good option, as they can access relatively cheap income protection while they are young when their protection needs are arguably greatest (mortgages, children, a long time until pension payouts start).
The premiums on this policy do not load for smokers or occupations, which is a big bonus.
The option may not suit everyone though. Some clients will not like the look of the higher premiums that come with the policy as they get older.
The latest offering of one2protect from Holloway Friendly is taking a positive step to address concerns an age-banded premium can generate, as well as building in some added benefits to the policy.
One2protect is a policy for white-collar workers that will guarantee the premiums for the first five years of the policy, after which they become annually reviewable.
It is important to note that this one does take into account smoker status.
They have also included an automatic benefit guarantee of up to £1,500, so if someone’s income takes a dip they can still access the full £1,500 of cover in the event of a claim. This amount can be higher if proof of earnings is provided.
A nice feature that is included is the option of a premium holiday based upon life events.
If the client is made redundant, decides to go travelling, or takes maternity/paternity leave, they can place the policy on hold for six months.
This allows them to keep the policy active and not pay premiums for up to six months, while they are focusing on other aspects of their life.
An option that I think is highly worthwhile; supporting people to keep their protection in place, at times when they may be tempted to cancel the insurance.
Kathryn Knowles is managing director of Cura Financial Services