National Friendly has launched an accident-only income protection product designed for clients who have not been able to find the right cover due to cost or health.
The policy, which involves no medical questions, provides a regular benefit if a client incurs a qualifying disabling injury caused by an accident. It does not pay out for other injuries or illnesses.
A range of hazardous pursuits are included as standard, and an enhanced list for an additional premium, which the insurer said was designed to target a younger market.
National Friendly added that its research suggested the new policy would find a “ready market” among the self-employed, particularly in the age range of 25 and 44, which the insurer said it had not previously targeted and believed to be a growing sector.
According to Oliver Jones, head of sales and marketing at National Friendly, the new policy offers clients a more affordable and cost-effective alternative to a traditional, full income protection policy.
Policyholders can select between £500 and £6,000 a month of regular benefit, up to 70 per cent of their earnings.
The policy is also linked to digital health provider HealthHero for services such as telephone or video access to a panel of private GPs and preventative consultations on emotional wellbeing, aches and pains.
David Jennings, commercial director at HealthHero, said: “Access to physical and mental support as well as private GPs is arguably more important than ever and so we’re pleased to be able to offer these crucial yet simple-to-access services to policyholders of National Friendly.
“These kinds of additional services also play an important role in helping customers recognise the value of their policy immediately and potentially minimising lapse rates for advisers and insurers. It is great to be able to demonstrate value to all clients whether they claim or not.”
National Friendly’s product launch comes after research from The Exeter found only 9 per cent of self-employed workers protected their income through insurance.
What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know.