Pioneer, the income protection provider, has launched the Professional Income Protection Plan (PIP) aimed at professionals and workers in low risk industries.
The plan offers guaranteed age costed premiums in order to make initial costs more affordable. These premiums will rise with time, along with the majority of most consumers’ salaries and other outgoings and rates will vary depending on sex and smoker status.
The product involves no financial underwriting at point of claim, no standard policy exclusions and non-deduction of state benefits.
PIP also includes an increase insurance option which is index linked to 10% in any one year. Customers can take this option at key life stages such as marriage or civil partnership, the birth of a child or taking out or increasing a mortgage. They can also take the option every third year to align benefit cover with income. There is a long term career break feature which can be applied provided cover has been in force for a continuous peiod of 36 months.
Despite the underperformance of the income protection sector, Andy Chapman, chief executive of Pioneer, believes PIP can defy the downward trend using a transparent approach.
"As a provider, Pioneer is in a strong position to innovate and the launch of PIP is just the latest stage in our product development strategy," he says.
He says white collar, or low-risk workers, represent most of the current and potential income protection market but Pioneer may launch similar products for other groups if PIP is successful.
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