Standard Life is launching a new set of income protection products next week which it hopes will put it on a level playing field with the front-runners in the market.
It has set a target date of December 1st to launch a guaranteed rate IP product and improve the policy conditions of its current reviewable rate products.
New features of the products include guaranteed rates, cover while not in paid occupation – which covers someone for five years if they go on maternity leave and become too ill to work or decide not to go back to work – and a guaranteed option to increase cover on events such as marriage, promotion or an increased mortgage.
Standard Life will initially be targeting older clients with larger risks and quotes will be available on The Exchange with commission provided at 140% of Lautro.
The price for the reviewable rate for someone in a class one occupation with a sum assured of £12,000 on a level basis and a 13-week deferred period is £27.69 for a 50 year-old man and £46.48 for a 50 year-old woman.
The price for the guaranteed rate on the same basis is £31.26 for a 50 year-old male and £52.57 for a 50 year-old female.
The maximum benefit level is £125,000 and there is a GP report referral limit of £25,000.
Mick James, protection marketing manager at Standard Life, says the new products are not the end of IP developments at the firm and it has further plans for the product line in 2007.
He states: “We are trying to get a seat at the IP table as the industry starts to gear up and tries to deal with the issues surrounding the policies. The new products will put us up there with the front-runners in the market.”
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