This new income protection plan has been specifically tailored to the needs of medical, dental and legal workers, Wesleyan says. The main features of the plan are:
* Own occupation disability definition.
* Benefits payable to selected retirement age or for up to 2-5 years.
* Maximum benefit is £2,600 a week for doctors, dentists and lawyers and £1,400 a week for others. For annual incomes up to £150,000 a year, the maximum benefit is 55% of pre-claim income. Above that it is 40% of the income over £150K, plus £82,500. Earnings includes benefits in kind and dividends (if work related)
* Guaranteed or reviewable rates.
* Deferred periods of 0, 2, 4, 8, 13, 26 or 52 weeks. Up to five different periods can be chosen to match benefits to decreasing sick pay income while off work.
* Guaranteed increase options on increased earnings resulting from a significant career step; getting married/civil partnership; having or adopting children; taking out a bigger mortgage. Age limits apply.
* Annual indexation increases cover in line with the RPI, up to 12% a year, and can be stopped and restarted at will.
* Career break options.
* Access to specialist health treatments and services through the Wesleyan Health & Wellbeing Scheme.
In addition to this IP plan, Wesleyan has also launched a personal accident plan for professional groups.
What They Say
Managing director of life and pensions John Nicholson said: “Wesleyan’s Personal Income Protection Plan is designed to be a plan for life. We have created it with the specific needs of our professional customers in mind and it is offered on an own occupation basis. Our customers often train for many years to achieve their job role and it’s important therefore that they are protected for that specific role even if they can work elsewhere outside of their profession.”
What We Say
"Targeting professional groups generally means higher insured benefits and a better claims records (and so lower premiums), plus the lapse risk may be lower too compared to many other occupations. Wesleyan has successfully targeted professionals in recent years and so is very experienced in this demanding sector.
"The plan is fairly standard, and the literature usefully sets out how self-employed and dividend income is treated, which many insurers don’t (perhaps because the people writing the literature are all salaried employees!).
"Having up to five deferred periods will be unnecessary for many but very useful to others, even if it adds a layer of complexity. The Health & Wellbeing Scheme looks to be useful too.
"Some professions (e.g. doctors) can have complex sick pay schemes which require insurers to take a different view comparted to ‘normal’ customers but there was no mention of this in the literature we viewed online. However, having an own occupation disability definition is valuable as, traditionally, some professionals have been unable to get that definition as a relatively minor disability can stop them practicing, even if they are quite capable of switching to an alternative occupation."