PPS Mutual has released a new Income Protection offering and made enhancements to its existing Income Protection Select product, effective from 10 December 2022.
New Product – Income Protection Prime 70
Adding to its existing Income Protection Select product offer, the new IP Prime 70 product provides the option for professionals to cover up to 70% of their income throughout a claim.
The new policy also offers the following benefits and options:
- The life insured will be assessed under the Own Occupation definition for the first 30 months of the claim. After that time, they will be assessed against the Any Professional Occupation (or Any Occupation) definition.
- Optional ‘booster’ benefit to 84% for the first 6 months of claim
- Optional additional super contribution option
- No requirement to take part in a formal recovery plan in order continue a claim
- Capability clause on partial disability claims only
- 2-year and 5-year benefit periods provide Own Occupation cover for the full duration of claim
Product Enhancements – Income Protection Select
Key changes to the existing product based on adviser feedback include:
- Improved Partial Disability definition by increasing number of hours the insured can work, based on a reduction in percentage of pre-disability working hours rather than a fixed number of hours
- Improved Recovery Plan wording – includes Members’ expectations of duties and remuneration, as well as expanded definitions to include retraining in an alternative occupation and simpler terms for members who are not working prior to a claim
- Improved Waiting Period definition
- PPS Mutual Director of Proposition, Matthew Pilcher, confirmed the removal of the existing clause allowing the claimant to return to work for up to five days without the waiting period restarting will have the effect of actually reducing the chances of the waiting period restarting: “…if [the claimant] tried to return to work twice during the waiting period, or went back for more than 5 days …the waiting period would restart. Now you just need to meet the partial definition (which allows you to work a number of hours regularly) and the waiting period will continue.”
- Improved definitions of Inactive Employment, eg:
- Career change
- Study leave
- Parental leave
- Removal of Support Package option and inclusion of the Bed Confinement Benefit as an in-built feature
- Removal of tapering on claims over age 60
With the exception of the removal of tapering on claims over age 60, the insurer advises the other enhancements have been passed back to members holding existing IP select products at no additional cost, and that policy holders will remain on the same premium tables.
It notes removal of the tapering on claims over age 60 will require an application and underwriting and will result in new IP Select pricing being applied.
Commenting on the product updates, Pilcher noted “By ensuring that we continue to evolve and improve our offerings to support the changing needs of the industry and the professionals in it, we can encourage low lapse rates and promote the longevity and stability that the life insurance industry is moving towards.”
Advisers can click here to access the new PPS Mutual Professionals Choice PDS, which took effect from 10 December 2022. The insurer has also released product overview brochures for both existing and new IP product offers:
Here we go again. The DI arms race in full swing .
[Not meant to be a dig at PPS, as it’s at all the insurers]
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