Burgesses RedundancySafe
HEALTH CARE INSURANCE REPORT - 1ST OCTOBER 2004
The latest product from the high profile Burgesses payment protection insurance broker is an annual renewable redundancy only product. Whilst not a health insurance product at all, it may be valuable as a rider benefit to sell alongside other products.
The plan is available to UK residents aged 18-64 at outset who have been in continuous employment for more than six months and who are not aware of any impending unemployment. The self-employed and company directors are covered if their ceases to trade. There is an initial 60 day waiting period unless the client is switching from another insurer. The plan also has a 30 day excess period.
Benefits are payable for up to 12 or 24 months and the monthly premium rate per £100 a month benefit is: 12 months benefit - £2.50% and 24 months benefit - £3.00%.
Maximum benefit is £2,500 a month or 75% of gross monthly income if less. The plan is underwritten by Compass Insurance on behalf of certain underwriters at Lloyd’s.
Comment: Although the UK economy is still strong, there are concerns about unemployment, and having such cover may help a client to feel more confident about staring a new health insurance sooner rather than later. Even if such a policy is only kept for a year or two, it may still provide valuable peace of mind.
Rating (max 5): Innovation: 3. Value: 3.5. Overall: 3.5
