Friends Life has become the first provider to offer Family Carer Benefit as part of its Income Protection proposition. Unique to the market, the benefit provides cover to a policy holder’s partner or child if they need full time care.
Family Carer Benefit pays up to £1,500 each month for 12 months if the policyholder’s spouse, civil partner or child needs continuous care. The policyholder can continue to work full time if they choose and they don’t need to be in receipt of any state benefits to make a claim.
The announcement comes as part of a package of enhancements to Friends Life’s already highly rated Income Protection proposition. The enhancements include:
- Family Carer Benefit
- A significant increase to the number of ‘own occupation’ professions
- Recurrent two-year limited benefit policy option
- Career break doubled from 12 to 24 months
- A wider choice of retirement ages
Families adjusting to a loved one needing continuous care, for any period of time, will be met with considerable challenges and face many decisions. Having financial support in the short term can help them focus on making the right decisions for their family in the long term.
New figures from Friends Life show that Income Protection is still being overlooked by the vast majority of people. Just 3.3% currently hold an IP policy – in contrast more people have pet insurance (13.1%) and travel insurance (31.2%). In fact, more people even have private medical insurance (10%) and even a Self-Invested Personal Pension (3.4%).
Colin Williams, Managing Director of Work Place and Intermediated, at Friends Life said:
“I am delighted that Friends Life has been able to bring Family Carer Benefit to the market. It’s a truly innovative development which gives the families of our customers’ important financial cover. It also means that our customers won’t have to make big decisions about work or their finances when their focus needs to be on their loved ones.”
Further research commissioned by Friends Life shows what people rate as their main financial priority[2]. By far the most common answers were paying the mortgage and paying household bills – two things that become increasingly difficult if you are forced to stop working because of injury or ill health.
“The enhancements we are making to our Income Protection proposition will highlight to financial advisors why they should be talking to their clients about IP and Friends Life IP specifically,” said Colin Williams. “More people are protecting their pets than their income – but if their income stopped they might struggle to pay their mortgage or their rent, let alone their pet insurance and other outgoings. It doesn’t make a lot of sense.
“We are one of the companies supporting the Seven Families initiative which is doing great work in raising the awareness of income protection. The Family Carer Benefit we’ve introduced is another reason more people should be considering this really important form of insurance.”
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