Our new two year payment term is designed to meet the growth in the low cost market.
The target market for Income Protection products remains unchanged – for individuals looking to protect their income until their selected retirement age our Standard product will cover them long term. For those customers wanting to protect their income for a shorter period, our new two year Low Cost option is now available should they become ill or incapacitated and suffer a loss of income.
We’ve also improved the replacement ratio for both the Standard and Low Cost versions of the product, used to calculate the maximum benefit based on annual earnings. New limits will be set at 60% of the first £60,000 of gross annual income and 50% of income in excess of that figure. This is designed to provide customers with a monthly benefit that equates to a greater percentage of their salary than previously permitted.
