New products: Personal accident/sickness
HEALTH INSURANCE - 1ST JULY 2002
Burgesses: Certaintyfirst
The company:
Burgesses is best known for its alien abduction and virgin birth policies – but there is a serious side to the company too, which is represented by this plan. Managing partner Simon Burgess has negotiated the product through Lloyd’s and it forms just part of a portfolio of products which are available from the company, some of which are branded products for brokers and others.
The product:
Certaintyfirst is a personal accident and sickness plan that pays up to 100% of income for 12 or 24 months in the event of accident or illness preventing the client from working. Premiums are split by occupation group:
Class 1: sedentary or non-manual occupations
Class 2: light manual occupations
Class 3: manual work
Class 4: these include actors, police, professional sportspeople, pilots and other occupations where an individual assessment is required.
Deferred periods of between one week and six months are available and the plan’s benefits go up to 100% of salary or £1m.
Options:
Whether to have accident only or to add sickness cover too and how much cover are the key options. A choice of deferred periods is offered, as is a lump sum accidental death or permanent and total disability benefit.
Marketing:
We have not yet seen the brochure for this product, but usually Burgesses’ marketing literature sets out the basis details reasonably well. But its approach is far from the glossy paper and clever art work of the major providers.
Complaints:
As we have not seen the brochure we cannot comment in detail on the clarity and comprehensiveness of the details that it contains. We remain concerned though that many general insurance plans are less open than the best regulated long term products and have little to say on complaints handling. Though every insurer hopes not to have complaints, effective and thorough procedures give clients more confidence.
Commission:
20% of each premium
What they say:
Simon Burgess, managing partner of Burgesses: “Price and flexibility are the main features of this scheme. 100% of salary can be covered without deduction of state benefits, unlike PHI (income protection) where the current maximum is often 50%.
“This is most important where contracts of employment provide from commitments in respect of salary continuance in the event of ill-health or where businesses wish to protect against the true loss to a business of a key person.”
What we say:
This plan proves that Burgesses can offer some attractively priced short-term cover that can be attractive to clients either when high levels of income are required or supplement income protection set up with a one year deferred period.
Health Insurance product rating: 3 out of 5.
