British Friendly Income Protection Insurance – Introduction
British Friendly was founded in 1902 as a mutual society (an organisation owned by its members). Originally established to offer sickness benefits to commercial travellers, it has its headquarters in Bedford. Today, it has nearly £100 million in assets and has over 14,000 members.
This insurer offers Care Assistance Benefit to people caring for their families (children, spouse etc) and indeed is was the first IP provider to do so.
In 2016, British Friendly had one of the highest claims payout rates of all of the income protection providers.
How Financially Strong is British Friendly?
British Friendly has nearly £100 million in assets. It’s a long-established business and as it’s a mutual society, has no need to pay shareholders.
Income Protection Insurance from British Friendly. Your At-A-Glance Guide
British Friendly’s approach is very flexible. The society offers its members the opportunity to adapt their policies to suit changing lifestyles of circumstances.
Also, the British Friendly Income Protection product has a good claims history. Importantly, it offers cover to certain higher-risk occupations. Speak to the experts at Black Lion Insurance to find out more.
- First and foremost, British Friendly uses the “own occupation” definition of incapacity.
- This insurer tends to pay out weekly, rather than monthly.
- Although British Friendly pays out up to 70% of your gross income, their maximum benefit is capped at £45,000 per year. So, you may want to think about an alternative insurer if your annual income is higher.
- With this provider, your premiums will rise annually in line with your age. This is because British Friendly offers age-banded premiums, rather than guaranteed premiums.
- Proportionate benefit. If upon your return to work you can only return to a less challenging role (and a lower income), British Friendly will top up your income to the full amount of benefit.
Overview of Key Policy Details
|Policy Type||Income Protection|
|Premium||After the 1st year, premiums will rise in line with your age.|
|Maximum Claim Duration||Unlimited (until the end of the policy)|
|Incapacity Definition||Own occupation for most occupations, even those considered higher risk|
|Deferred Period||Day 1/ 1 / 4/ 8 / 13 / 26 / 52 weeks|
|Indexation||Optional. Capped at a maximum of 10% linked to inflation, or a fixed rate of 5%.|
|Waiver of Premium||After you have been claiming for 28 days.|
|Maximum Cover||£45,000 per year, or the lower of 70% of your annual earnings.|
|Minimum Entry Age||18 years.|
|Maximum Entry Age||64 years.|
|Minimum Policy Term||5 years|
|Maximum Policy Term||Until your 70th birthday.|
|Guaranteed Insurability||If you’re changing your marital status, having a child or increasing your mortgage before 55 years there is no need for an extra medical.|
|Policy Exclusions||Certain very high risk occupations (see below)|
More Jargon-Free Information About British Friendly Income Protection Insurance – from Black Lion Insurance
British Friendly is a popular insurer, not least because it has no shareholders to pay and it’s well known for covering higher risk occupations. However, is it the right insurer for you?
Black Lion Insurance is a family-established business. We feel strongly that we’re here to help. Also, that we’re human beings first, and advisers second. So, we know how confusing income protection insurance can be if you’re not sure what you need.
Above all, we want to make things easy for you. Moreover, we want to guide and advise. Our team will never blind you with science – hence this easy-to-understand comparison guide below. Give us a call on 0203 146 2259 if you need further information or help from us.
Key Points about British Friendly Income Protection Insurance
- Firstly, it’s important to remember that British Friendly is a mutual. This means that rather than being defined as a “customer”, you’re a member of the British Friendly society and therefore you’ll have access to their mutual benefits. These include:
- Mutual Wellbeing. You’re entitled to 35% off Fitbit devices and smart weighing scales to get you engaged in a fitness or wellbeing campaign of your choosing. Also, there’s access to Health MOTs and a wellbeing hub full of useful health information. Last but not least, there’s an App for your smart device.
- Mutual Rewards. Discounts and vouchers for entertainment and high street shops. You may even win up to £1,000 in a quarterly prize draw.
- Mutual Partners. Legal advice online to help you to draw up your Will. Also, advice to help you buy a Health Cash Plan, with costs from £2 per week. This means that you’ll get cash back on dental treatment, specialist consultations and prescriptions.
- You could also get reductions on hotels, access to travel insurance and discounts on car and van hire.
- Mutual Support. Support services with access to a virtual GP, counselling, physiotherapy and a second medical opinion. There’s also access to charity helplines.
- With a defined number of exceptions, British Friendly considers all occupations on a case by case basis. Certain occupations are considered hazardous and are excluded, so please be aware of the following:
- Armed forces and merchant navy
- Member of a military reserve force
- Equestrian professions
- Nightclub security personnel
- Oil rig workers
- Police officers (including Community Support and Special Constables)
- Professional or semi-professional athletes or sportspeople
- Jobs that require explosives handling
- Care assistance benefit. For any partner or child who needs at least 35 hours a week full time care for more than 4 weeks, you will be paid up to £125 per week for up to 26 weeks.
- Death benefit. 26 times your weekly benefit if you die during the policy term.
- Bereavement benefit. 13 times your weekly benefit after the death of your partner, spouse or child.
- British Friendly will pay out claims for a maximum of 104 weeks if you are in the EU/Western Europe, USA, Canada, New Zealand or Australia. This is one of the longer terms of the IP providers. If you are elsewhere they will pay claims for no longer than 26 weeks.
- If you have a long-term policy, you will be able to claim for the same sickness or injury within 26 weeks of your last payment. With a shorter term policy, you won’t be able to claim for the same condition.
Do YOU need financial advice from Black Lion Insurance?
As you can see, British Friendly offers a number of advantages when it comes to income protection. In particular, they offer cover for slightly higher-risk occupations and are well worth considering from this point of view.
For example, if you drive a lot as part of your job, they may well consider your application where other insurers may not.
However, as with all insurance products, some providers may be more suitable for your needs than others. Income protection is designed to keep you or the key people in your organisation financially afloat should illness strike, or in the case of an accident or death.
Our aim is to educate our clients as much as we can; we work daily with our income protection partners, including Aegon, and we’re well versed in in the nuances of each provider and the cover that they provide.
So yes, rather than spend hours researching what you think is the best income protection policy, but which may turn out not to be, come to us.
Again, rather than invest your precious time finding a policy with potentially over-steep premiums, come to us. We may be able to offer you best-in-class options due to our negotiation power.
And don’t forget…
Income Protection Insurance. Enjoy 3 Months' FREE cover
Fill in the form on this page with the code BL3MF to qualify for THREE MONTHS’ FREE COVER when you set up your income protection policy with us.
How does an income protection insurance policy help when you need to claim?
You stop working due to an accident or illness, and stop earning an income.
You inform us, and we will guide you through the claims process with the insurer.
You will start to receive your monthly payout.
The monthly payout will continue for as long as your insurance policy covers.
What are your policy options?
Short-Term or Long-Term Protection
Short-term plans usually range from 6 months to 2 years. Long-term plans will pay out until you are well enough to go back to work, whether that’s 1 year or 10 years.
This can range from just a couple of days, up to a whole year. The standard length of time for most long-term insurance policies is 4 weeks.
Policy Cease Age
Maximum Pay-Out Period
What affects the costs of your policy ?
Policy Cease Age
The costs of your insurance depend on various factors.
The more you want to insure for each month, will subsequently increase your premium, as well as the length of the policy and your deferred period.
Your age can also play a role. The older you are, you are seen as more likely to make a claim and so your policy premium will reflect this.
It is important to declare any previous medical conditions or illnesses. Certain disorders may not be covered by your income insurance and others may mean you incur a higher premium.
You will also be asked about your smoking status. Smokers are deemed higher risk resulting in a higher cost for your insurance.
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We are a dedicated team of financial advisers, with years of experience in guiding our clients to a solution that meets their specific needs. We specialise in helping both employed and self employed individuals, as well as business owners on a variety of solutions, which range from life insurance, income protection insurance, keyman insurance and shareholder protection insurance.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.