Pioneer Friendly Society's Pure Income Protection Plan aims to provide a regular income, if due to illness or injury, the insured is unable to work and suffers a loss of earnings.
Provider: Pioneer Friendly Society
Product: Pure Income Protection.
This plan is purely a protection policy and contains no investment element. Day one cover is available along with a one week deferred period and further deferred periods of four, eight, 13, 26 and 52 weeks.
Does the provider provide access to online literature: Yes
Minimum acceptable age at entry: 16
Maximum age at entry: 59
Minimum policy term: Five years
Retirement ages available: Any retirement age can be selected between 50 and 65 subject to a minimum term of five years. Should the policyholder wish to extend their retirement age, this will be subject to medical underwriting and a minimum term of five years.
Minimum annual benefit available: £18 per week or £936 pa
Maximum annual benefit available: Must not exceed 65% of gross salary (if employed), or 65% of net personal taxable income after deduction of business expenses (if self-employed).
Premiums paid by direct debit: Monthly contributions may be paid by direct debit and annual contributions may be paid by cheque or direct debit.
Investment charges: Not applicable
Increase term after start date: Yes
Change benefit subject to underwriting: The flexibility of this policy enables an insured to increase or decrease their benefit when their circumstances change.
Waiver of premium: Yes. In the event of a claim, for day one cover, four and eight week deferred periods, the policyholder will be required to pay the first three months' premiums from the date of incapacity. After this time, the premiums will be waived.
For 13, 26 and 52 week deferred contracts, premiums will be waived from commencement of the claim. Waiver minimum age is 16 attained and maximum age at outset to include it is 59 attained. Waiver ceases with the plan up to age 65. The waiver definition is same as policy.
Waiver benefit amount indexed: Yes, if client selects the inflation proofing option at outset or increases benefit during policy term.
Benefit amount index linked: If the plan holder selects the inflation proofing option at the outset, the benefit will be adjusted approximately by the average rise in the national Average Earnings Index (AEI) and the Retail Price Index (RPI), up to maximum of 10% and premiums will be adjusted accordingly.
Benefit amount indexed by: Average of RPI and AEI to maximum of 10%.
Reviewable premium rates: The rates will increase with age as per the published rate table and may be changed by the Board on actuarial advice.
Career Break available: Yes
Houseperson cover available: Yes
Maximum housepersons benefit: £5,054 per annum, or £421 per month. The full range of deferred periods: Day one cover is available along with a one week deferred period and further deferred periods of four, eight, 13, 26 and 52 weeks.
Proportionate benefit available: Following a period of full claim benefit, if the policyholder returns to work in a different, lower paid capacity, consideration will be given to paying a reduced benefit in proportion to the difference between the earnings at the time of incapacity and those on returning to work.
Rehabilitation benefit available: Following a period of full claim benefit, if the policyholder's illness or injury means that they can only work on a part-time basis or in a reduced capacity, consideration will be given to paying a reduced benefit.
Relapse benefit available: Yes
Unemployment cover available: Whilst the policy does not provide benefits in the event of unemployment, the policy can be continued on the same basis as a houseperson with a maximum benefit of £5,054 per annum during periods of unemployment. The premiums would be adjusted accordingly, and would have to be maintained. On return to work within 52 weeks, evidence of health will not be required in order to reinstate the original benefit with premiums amended accordingly.
Disability counsellors used: Yes
Cover operates worldwide: Policyholders must be resident and actively at work in the UK, with no immediate intention to move or work abroad at inception of the policy. Cover can continue if the policyholder subsequently lives or works abroad, however, claims from outside the European Union will be restricted to 13 weeks in any period of one year subject to an overall limit of 39 weeks in total.
Cover operates in Europe: Yes for countries in the European Union, other countries will be restricted to 13 weeks in any period of one year subject to an overall limit of 39 weeks in total.
Maximum % of income insurable: The benefit stated in the policy must not exceed 65% of gross salary (if employed), or 65% of net personal taxable income after deduction of business expenses (if self employed).
State benefits deducted from benefit amount: State benefits will not be taken into account for the first 52 weeks of a claim, but thereafter the Society may reduce the client's benefit if over-insured. Continuing income is deducted from benefit amount.
Evidence of income will be required at the claim stage. The maximum benefit payable is the lesser of:
n The sum insured shown on the policy schedule.
n The selected percentage of the client's earnings at claim, less any continuing income from their employment or business, and any benefit from other health related policies.
Other insurances deducted from benefit amount: Yes, if they arise from incapacity and involve a regular payment to the policyholder or a regular payment made on the policyholder's behalf.
Pension income deducted from the benefit amount: Yes, unless they were received whilst working in which case it would not be taken into account for the purpose of calculating maximum insurable benefit.
Number of occupation classes: One rate for all occupations.
Minimum deferred period in weeks: Claim must be for more than two days then back dated to day one. There is only one class of occupation.
Notification of a change in occupation required: A change of occupation will not affect the policyholder's entitlement to benefit. However, they must advise the Company in writing of any changes that might affect their entitlement to benefit.
Standard definition of disability: Own – This means the insured must be unable to work at their normal occupation, because of illness or injury, resulting in a loss of earnings. Any member, subject to the exclusions in the Key Features Document, who is totally incapacitated due to illness or accident from working at his normal occupation, for more than two consecutive days excluding Sunday, and not following any other occupation for profit or reward, shall be entitled to sickness benefit. With the provisions that, if after not less than 52 weeks of his claim he shall be able to carry out some other occupation to which he is fitted by training, education or experience then he must do so.
Suited definition of disability: After 52 weeks of a claim the company reserve the right to amend definition to 'suited'.
Day one cover: Cover is provided from day one of incapacity subject to being incapacitated for more than 2 consecutive days (excluding Sundays) and is then backdated from day one.
One week deferred period: Yes
Four weeks/1 month deferred period: Yes
Eight weeks/2 month deferred period: Yes. Day one, one, four and eight week deferred policyholders will not be entitled to sickness benefit for the first three months after inception of the policy.
13 weeks/3 month deferred period: Yes
26 weeks/6 month deferred period: Yes
52 weeks/one-year deferred period: Yes.13, 26 and 52 week deferred policyholders will be able to claim after the expiry of their deferred period.
Two deferred periods in one plan: A policyholder can elect for a maximum of two deferred periods.
Non-smoker rates available: Although the initial premium will be the same for smokers and non-smokers, in certain circumstances some smokers may incur a loading.
Own doctor medical available: Pioneer encourage medical examinations to be undertaken by the policyholder's own doctor in most cases, although there could be instances where they would request an independent examination.
Insurer pays for medical evidence: Full cost of medical evidence required at underwriting is borne by the Society and at the claims stage. Policyholders may incur a charge from their doctor for completion of the claims form. This is not refunded by the Society.
Weblink: www.pioneer-friendly.co.uk
