Leading health care cash plan provider Sovereign Health Care has partnered with income protection expert PG Mutual to launch a complementary product offer, through its newly created subsidiary company Sovereign Assured Partners Ltd.
Called ‘Income Protection Plus’ (IPP), the plan will provide an income for policyholders if they are unable to work due to illness, accident or injury. Its key benefits include:
- Cover starting as soon as the first contribution is paid
- Plans tailored to suit each individual
- Those unable to return to work will receive benefits until the age of 65
- No penalties for claims
What’s more, as an added bonus, PG Mutual returns profits to its members meaning the plan builds up an investment element for the future, whether policyholders claim on the plan or not.
Between 2013 and 2016, 97 per cent of all claims by PG Mutual income protection policyholders were paid out, totalling more than £3.85m.
Two cover options are available. Premium cover will pay 100 per cent of income benefit throughout the term of a claim. Standard cover will pay 100 per cent for the first two years, reducing to 50 per cent in year three and then 30 per cent for as long as a policyholder remains incapacitated.
Sovereign Health Care’s chief executive, Russ Piper, said: “Illness, accident and injury can have significant financial implications for people, so we are very pleased to be able to offer Income Protection Plus in partnership with PG Mutual.
“It is a natural evolution for us and gives policyholders the peace of mind that should an accident or unforeseen illness befall them, they are covered. It complements our cash plans, which encourage policyholders to be proactive about staying healthy.
“Having these plans can also have a positive impact on an individual’s overall awareness of, and interest in, their health. This means they are more likely to make better life choices, for them and their families.”
Income Protection Plus can be set up to start from the very first day of absence from work, which benefits those who are self-employed and have little or no financial buffer in place should they be unable to work. It also provides for people who may not be entitled to sick pay from their employer. Even if they are eligible for Statutory Sick Pay, this is only available for a short period of time, so income protection can help ensure people are better able to meet their financial commitments despite being unable to work.
Premiums are dependent on age, profession and type of policy, but IPP offers flexibility with policyholders able to adapt the plan to suit their needs and budget by choosing the amount of income they need each week, when payments will begin, as well as the amount of long-term benefit selected.
For more information about ‘Income Protection Plus’, please visit www.sovereignassured.co.uk