Friends Life has introduced a number of updates to its IP plan:
* Maximum benefit has been increased to 65% of the customer’s first £10,000 of income, and 55% of anything above that. Previously the limits were 70% of the first £10,000, 50% of the next £50,000 and 40% of the balance
* P11D benefits – including the value of company cars, accommodation and company funded scholarships – can now be counted as gross income. This can enable the maximum insured benefit to be even higher
* The changes are more portal friendly, meaning advisers no longer need to contact Friends Life directly for some quotes.
What They Say
Director of sales and marketing Mark Anders said: “We believe that everyone should be able to financially protect what matters to them most should they become ill or injured, and be unable to work. It is not only about covering the monthly bills; it’s also about helping our customers and their families to maintain the lifestyle they have worked hard to achieve. These enhancements are designed to help our customers to do that.”
What We Say
"In making these changes, Friends Life is again ratcheting up customer benefits, and also making life a little easier for advisers too. On their own, the changes will be relatively insignificant for many, although most customers should benefit (some lower earners will have a smaller maximum benefit now though).
"The trend though is that IP is slowly becoming more fit for purpose and increasing its appeal, not just for customers, but also for the financial advisers who recommend the plan."