My Earnings Insurance is Cirencester’s first non-Holloway income protection plan and is being marketed via insurance brokers and mortgage brokers as well as through financial advisers.
The protection only plan offers:
* Level premiums throughout or annually escalating premiums (which go up on each birthday).
* Level or indexed benefits (rising in line with average earnings, up to 10% a year).
* Own occupation definition with level benefit throughout the claim period.
* Choice of day one or 4, 8, 12, 26 or 52 weeks deferred periods.
* Optional unique Severe Injury Cover, which combines day one cover for a series of injuries with a longer deferred period for illnesses.
* Terminal illness benefit, which pays a lump sum on diagnosis (death expected within 12 months) on top of continuing income benefits until death.
* Option to have split deferred periods.
* Maximum benefit is 65% of earnings up to a maximum benefit of £42,640.
* Minimum age at start is 18 and maximum is 54.
* The plan is not available to those on zero hours employment contracts and anyone who works outside the UK for more than eight weeks a year.
* The plan can last to age 70 or a given retirement age based on the customer’s occupation.
* If an exclusion is applied for back disorders or mental illness, a 5% base premium discount is applied to each.
* The plan is available through the Assureweb comparison portal or direct.
What They Say
Director of sales and marketing, John Bridge, said: “The contract has been developed after extensive research and feedback from our members and advisers. Following this feedback, we have delivered an income protection contract that provides flexibility, affordability and peace of mind through a continuing income for members, should the worst happen."
What We Say
"Some of the rules may be a little quaint, but this is generally a pretty straightforward IP plan designed at working men and women earning up to £65,000 a year.
"The Severe Injury Cover and Terminal Illness benefits both provide useful additional cover and we like the fact that indexation uses average earnings rather than prices [although, short-term, prices are rising faster, longer term, the reverse is likely to apply].
"The plan also provides own occ for all occupations accepted and a good choice of deferred periods (watch out for the society-defined retirement ages though].
"All in all, the plan offers a good alternative to Cirencester’s usual Holloway plans."