Holloway Friendly has introduced a raft of measures for members in response to the ever-rising cost of living.
The specialist income protection provider has announced it will offer members the ability to pause their insurance and payments for up to six months.
Members who have had their insurance for more than three months will be able to pause their insurance and payments.
The provider introduced a similar payment break option during the Covid-19 pandemic for members experiencing financial difficulties.
Holloway Friendly has also introduced a Member Support Fund, which will be used to provide some financial help to members who require it.
All remaining Covid-19 exclusions have been removed for existing members and all new business.
Chief executive Stuart Tragheim said: “This has been a difficult year for many people, and we’re seeing an increasing number of our members impacted.”
The British Chambers of Commerce (BCC) has said it expects UK inflation rate to reach 10 per cent in Q4 2022, leading some insurers to help consumers with the cost of living.
The 10 per cent inflation rate is significantly more than the average earnings growth of 5 per cent, according to the BCC, leading to even more financial pressure on people.
Tragheim added: “We’re aware that things may continue to get worse in the short term, as we see the consequences of high levels of inflation, rising energy prices and potential increases in mortgage payments.”
Last week (August 4), the Bank of England raised interest rates to 1.75 per cent. The central bank now expects inflation to rise over 13 per cent in Q4, and to remain high throughout 2023.
The rising interest rate has increased the cost of mortgage payments and disruption to global supply chains has resulted in surging food and energy prices.
These factors mean outgoings rise while savings fall, and households come increasingly under pressure.
Further interest rate increases are expected over the coming months, and predictions of a recession have become of when, not if.
Holloway Friendly said the measures introduced will benefit clients in the short term, but may only provide a stop gap for clients if the cost of living crisis continues.