Income protection provider The Exeter has announced enhanced support for members that may lack the financial evidence to make a claim.
Through the introduction of two new features to its income first product, The Exeter has stated its intention to provide greater support for members in two "vulnerable circumstances".
Both customers who have recently started their first job, and customers who have suffered involuntary redundancy or business failure, will receive support through the new features.
To support those in their first job, the “first job promise” feature will, if a member claims within their first year of employment, calculate their income based on an annual salary of the income they have so far earned prior to the claim.
The Exeter explained that, typically, when an income protection claim is made, a member’s benefit is assessed against their previous 12 months of earnings, however, for those who have just started work following full-time education, this can be impossible to provide, therefore exposing a gap in cover.
The new feature will offer "greater certainty" for the member at the point of the claim and is designed to make income protection a more appealing prospect to young adults who are entering employment.
Those who have experienced redundancy or business failure can be supported by the “redundancy premium holiday” feature which aims to give members greater certainty during times of financial difficulty and the ability to retain full cover, benefits, and access to value-added services.
However, customers will need to meet certain criteria to qualify for the premium with an employed person needing to be in permanent employment and be made involuntarily redundant at least six months after the policy begins to qualify.
Self-employed members will qualify for the feature if they suffer a form of business failure, such as bankruptcy, insolvency, or liquidation, at least six months after the policy starts.
The Exeter director of distribution and marketing, Steve Bryan, said: “For those without access to employer sick pay benefits, or those just starting their careers, a reduction in income due to illness, injury or involuntary redundancy can have an immediate impact on their financial wellbeing and potentially lead to them being in a position of vulnerability.
“The enhancements introduced on our income first product are designed to provide greater certainty to members who find themselves in these situations and highlight the importance of income protection in providing peace of mind to workers of all ages and occupations."
Bryan added that the changes will also support The Exeter's alignment to the new consumer duty which requires firms to provide an appropriate standard of support to retail customers to meet their needs, including those with characteristics of vulnerability.
tom.dunstan@ft.com
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