Holloway Friendly has unveiled what it claims to be a unique critical illness income protection (IP) policy.
The policy will pay a regular benefit to replace loss of earnings when someone is unable to work due to a specified critical illness. The friendly society claims it is unique in that it will provide a claimant with a monthly income rather than a single lump sum payment, more usual with critical illness policies.
The policy will cover up to 60% of someone’s gross annual earnings. If someone needs to claim Holloway Friendly will make a twice monthly payment with a maximum benefit of £10,000 per month and a minimum payment equivalent to £50 per week. The policy is available both to employed and self employed people and earnings used to calculate payout can include dividend payments.
There is no limit on the number of times that a person can claim under the policy. Cover will be provided for the duration of the policy, no matter how many claims someone makes.
Premiums are guaranteed to stay level for the duration of the plan unless someone chooses to apply annual increases. However, the policy holder may choose to increase or decrease their payments, and therefore their policy, at any time. There is also the possibility to suspend the cover while someone takes a career break; the cover can then be restored to the same level on the same payments at the end of the career break without the need for re-underwriting.
Mat Manser, sales and marketing director for Holloway Friendly, said: “While critical illnesses are life limiting, they are less often life ending any more. We have a continued need for people to have a regular income while they are sick, to help with their usual day to day needs such as child care, school and food bills and paying the mortgage.
“This Holloway Friendly critical illness IP policy provides another fantastic option for advisers when discussing protection with clients. We believe that taking away someone’s financial concerns gives them one less thing to worry about and will help them get back to full health sooner.”
