Mutual insurer, British Friendly, launches income protection death benefit adding extra benefits for policyholders
British Friendly, which announced earlier this year it had paid 96.7 per cent of all income protection claims over the last ten years – the average IP payout in 2015 was 92.1 per cent – has now made further improvements to its income protection policies.
The insurer has launched a new death benefit for its income protection policies, which is paid following the death of an insured policyholder. On death the benefit is paid to the policyholders next of kin and will be included at no additional cost for both existing customers as well as new ones. It is paid as a lump sum that amounts to six times the monthly income protection payment.
British Friendly says it is the first provider to offer this kind of benefit to both new and existing IP customers in the UK, regardless of initial policy terms. Policyholders can also nominate multiple individuals to receive a percentage of their death benefit payments by completing and returning a written nomination form to British Friendly.
In an extra move, British Friendly will also be making retrospective payments of the death benefit for members who died from the January 1, this year.
Iain Clark, Marketing and Distribution Director at British Friendly, said: “As a mutual, British Friendly always looks to offer product enhancements that are genuinely useful to our members and advisers.
“By providing an amount of life cover automatically to our income protection policies we are improving customer value through additional membership benefits for both new and existing customers with something that many families will appreciate.”
Tom Conner, Director at Drewberry Insurance, added: “Ideally anyone who earns a salary and has dependents will have both income protection and life insurance. If the worst happens, this death benefit will be a welcome extra payment to the dependents for those that do have life insurance and give vital financial support for those that don’t.”
Commenting on this latest announcement, Chris Hargreaves, founder of AngryPolicyholders.com said: “British Friendly are the first UK insurer to offer this type of benefit within income protection policies. Offering a death benefit, especially at no added cost expands the benefits of their income protection policies.
“To then go further and add this death benefit for no added cost, with the flexibility of allowing policyholders to nominate multiple individuals to receive the death benefit can only be welcomed. Lets hope other insurers follow suit and add similar benefits to their income protection plans.”