PruProtect: How can IP be written for consumers who normally cannot get own occupation cover
PruProtect is one of the few UK’s insurers to already offer own occupation to policyholders. The insurer, which adjusts payout terms for certain occupations, questioned whether, just because clients cannot be offered own occupation why must it mean they must only be offered activities of daily working (ADW) or activities of daily living (ADL) based underwriting?
Phil Jeynes, head of account development at PruProtect, told COVER: “PruProtect is fully behind Cover’s Income Protection Campaign. We only offer Own Occupation cover for IP and believe that this represents the most comprehensive and fair protection for consumers.
“We would welcome increased debate across the industry on IP and in particular whether their remains a place for any occupation or work tasks cover, given the potentially higher cost of own occupation income protection.”
Commenting, Roger Edwards, proposition director at Bright Grey and Scottish Provident, said: “I suppose one of the questions we have not answered yet is that, given the issues around ADW and ADLs at the moment, do we want to still have these as a choice?
“We could give a bomb disposal expert own occupation but it would be at a pretty unaffordable rate. So do we offer a work task definition that has been refined or is it off the table now? Is this better than nothing?
“It’s a question I’ve not settled in my own mind yet.”
Well, angrypolicyholders.com can answer Rogers question. ADW and ADLs don’t even cover you if you are in hospital for three months as was my case. It would not matter what your occupation is if you have a work task based policy you would have to be in a coma to get a straightforward payout.