Cirencester Friendly has re-launched an income protection product following adviser feedback.
Now branded as 'My Earnings Protected', the revised product does not deduct state benefits at point of claim, and features an increased maximum benefit level and the removal of the four week initial waiting period.
A Cirencester spokesperson said the product had a more relaxed approach to the length of time an applicant has been registered with a GP in the UK, down from five years to three.
As prior to its rebrand, the income protection features day one cover, and 'no loadings for occupation, smoking and hazardous pursuits', meaning it will pay out to people who have dangerous jobs or smoke without extra charge. The policy covers up to 65 per cent of earnings.
David Macgregor, commercial director for Cirencester Friendly, said: "These improvements have been made as a direct result of adviser feedback and we are grateful for their input into this wide range of enhancements.
"We know income protection can appear complex to consumers so we were keen to provide greater clarity and certainty and with My Earnings Protected, we have achieved that."
Jon Bean, chartered financial planner at Eldon Financial Planning, said any additional competition in the marketplace was to be welcomed as it gave clients the ability to tailor the protection arrangement around what they actually need.
He said: "The important thing with any protection product is ensuring that it meets your specific needs – in essence that you are not paying for features which would be redundant, or overpaying for features you don’t need – such as short deferral periods should your employer offer a reasonable sick pay arrangement."
Mr Bean said the more ‘options’ an individual can build in, the more certainty they can have regarding what they are paying for is what they need.
He added: "Things like options to increase cover on ‘life events’ can go some way to future proofing the plan and allowing you to adapt to changes over the years."
Mr Bean said: "One thing to query though is whether ‘no loadings for smokers, occupation or hazardous pursuits’ could be to your detriment if you are a non-smoking, low risk office worker without any dangerous hobbies.
"Presumably the risk of including these groups is factored in to the premiums and therefore it is as important as ever to obtain good cover, at low cost – and to shop around."
rachel.addison@ft.com
