PruProtect’s latest launch is no less than seven new products including whole of life cover and family income benefit but this review focuses on the new Education Cover plan.
On a parent’s death this can pay for:
- £750 per school term per child covered if the State version of the plan is chosen
- Or, if the Private School option is selected, this pays school fees, up to £10,000 per term per child (boarding – up to £6,000 per term for day students)
- A £1,000 star award is payable if a child excels in a particular discipline e.g. grade 8 in a musical instrument or obtaining a Duke of Edinburgh award
- Tuition fees paid for children in higher education (up to £9,000 a year, rising if fees rise). Or £3,000 a year for five years if they do not go into higher education (again, rising in line with tuition fees)
In addition, a one-off £1,000 payment is made if a child is hospitalised for more than ten days or is off school ill for more than 20 days. The plan also includes free serious illness cover on the child’s life. This pays up to a total of £5,000 per family.
Access to the Vitality programme is included and all benefits are reviewed annually to allow for inflation. The plan is available in three variants: State (for children in State education), Private School-Day, and Private School-Boarding. Typical initial monthly premiums would be £7.45, £16.10 and £20.27 respectively.
What They Say
Marketing and distribution director Justin Taurog said: “No other insurer can boast the same ability to deliver fresh, customer focused products with the speed and ingenuity of PruProtect. We are proud to be able to offer advisers another opportunity to give their clients a differentiated, bespoke solution for their protection needs, supported by the largest protection distribution support network of any provider in the country.”
What We Say
"Education can be an expensive business – it costs around £1,200 a year to send a child to a State secondary school, while private school fees now average £4,186 a term and have risen by 30% over the past five years.
PruProtect’s solution is a life policy (with built-in serious illness and hospitalisation cover) that enables parents to ensure their children’s education can continue if they die.
One downside is that such hypothecated cover could encourage some parents to neglect their other protection needs but, given that most people are already under-insured that is a small risk in practice. However, we would have liked to see a private medical insurance option and the opportunity to continue cover for the growing number of post-student adult children still being financially supported by their parents.
Education plans have previously been mainly savings based and not all have succeeded. It is good to see a major provider offering a protection-based solution."