Unum, an income protection insurer, is reducing the cost of its personal income protection products for most clients by up to 20%.
From midnight tonight most clients will receive a reduction of between 5% and 20% in the premiums they will pay. Existing clients with reviewable rates will also see their premiums change in line with the new rates in due course.
Unum has also increased the maximum benefit available to a £200,000 a year limit to attract more high earners. Unum will provide a tax-free benefit of up to 50% of gross earnings, including dividends and P11D benefits, with no deduction for state benefits, under its personal income replacement plan.
The company has also removed its standard medical underwriting limits to simplify the application process, especially for higher earners, by removing its standard medical underwriting limits. Unum will no longer automatically request additional medical evidence from the client’s GP solely because of the amount of cover they have requested.
Linton Penman, Unum’s head of marketing, says: “It sounds obvious, but the more a client earns, the more they stand to lose if an illness or injury prevents them from working. Even those on the national average wage of £25,272 could see their net incomes fall by around 70% if they only had the State to fall back on.
“By increasing our maximum level of cover to £200,000 a year, advisers can better meet the needs of their high earning clients.”
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