Burgesses grasps unemployment
COVER - 1ST DECEMBER 2004
The protection specialist Burgesses has launched a portfolio of eight unemployment insurance policies covering payment of medical premiums, bills, school fees and car insurance.
The Safe range of products comprises Leisuresafe, Motorsafe, Housesafe, Medicalsafe, Feesafe, Billsafe, Preiumsafe and Incomesafe. For instance, Medicalsafe, pays healthcare premiums and prescription charges and Feesafe any school fees.
The contracts are available to everyone aged between 18 and 65 who is in employment, self employment or contract work, regardless of occupation.
Incomesafe is a sweeper product, providing a monthly benefit of up to £2,500 tax free or 75% of gross earnings after 30 days. The premium rate is currently £3.75 per £100 of monthly benefit including tax. The policy pays out the replacement income for up to 12 months.
Simon Burgess, managing partner at Burgesses said: “We have undertaken considerable market research and believe there is a demand for this type of business. There is significant interest in unemployment insurance at the moment. Within the first 10 days of launching the portfolio of insurance policies we underwrote 200 policies. Our target is £100,000 within three years. No medical check is needed to take out a policy.
“We will sell mainly through IFAs and will assist them with their marketing. This includes access to our telesales centre for quotes. We will also help IFAs by canvassing their clients and providing literature and point of sale documents free of charge.
Those who are in temporary or seasonal employment can no apply for the safe range of products. Prospective policyholders must be working for more than 20 hours a week and have been in employment for the 12 months prior to the proposed policy start date.
Policy holders can not make a claim within the first 90 days of taking out the policy. Monthly benefit payments begin 30 days after becoming unemployed.
Claims cannot be made if the policyholder is in contract employment and the fixed term contract ends or if they accept voluntary unemployment, resign or retire.
Company directors owning more than 10% of the issued share capital of the company and the self employed are considered unemployed at the permanent cessation of business caused by circumstances beyond their control.
In the case of a company director, claims can only be made if the company has been wound up by a creditor who is not a director of the firm.
