Shepherds Friendly Income Protection
Shepherds Friendly – Introduction
Founded in 1826, Shepherds Friendly is one of the oldest mutuals in the world.
Today Shepherds Friendly focuses on three main product offerings. These are Savings & ISAs, Life Insurance for the over 50s and Income Protection.
According to the organisation’s accounts for the year ended December 2022, it now has 136,000 members.
Shepherds Friendly Customer Reviews
Shepherds Friendly use Reviews.co.uk to collect reviews from their customers for all their savings and insurance products. To date, the company has over 2,700 reviews with an average rating of 4.6. However, it should be noted that many of the reviews appear to relate only to ISA products and this may not be a reliable indicator as to customer satisfaction of Shepherds Friendly Income Protection products. Read Shepherds Friendly Reviews.
Shepherds Friendly 2023 Claims Report
A full claims report for Shepherds Friendly was not easily found online. However, a news article from their website states that Shepherds Friendly paid 96.2% of Income Protection claims in 2022.
Income Protection from Shepherds Friendly
Shepherds Friendly’s Income Protection policy provides cover for employed and self-employed individuals requiring an annual benefit level lower than £49,000.
Many higher risk occupations are not eligible for protection. Specifically, those in the construction industry would be advised to consider Income Protection for Construction Workers and those working in the aviation industry may prefer Pilots Income Protection.
Given that the policy provides less coverage than some other insurers with regards to illnesses or injuries that are acquired outside of the UK, those who travel a lot for work or leisure may wish to consider an alternative policy.
The information below is not intended to provide advice on the suitability of any particular policy for the reader. For a free consultation and full market review, speak with Black Lion Insurance today on 0203 011 00 22 or request an Income Protection Quote from Royal London.
Monthly Benefit and Maximum Cover
The total maximum cover which can be insured is 70% of a policyholder’s annual income with a limit of £49,000. The minimal amount of cover offered is based upon the monthly premium and can not be lower than £5 per month.
For those who are self employed, Shepherds Friendly will cover up to 70% of Net Profit taken as an average of the last 3 years accounts / self-assessment statements.
Dividend payments can also be covered up to 70% provided that they come from a limited company the policyholder is a working director of and that there are no more than 3 other working directors.
To determine the level of incapacity required in order for a policyholder to make a valid claim, Shepherd’s Friendly use “own occupation”. This is defined in the policies terms & conditions as;
“We will consider you unable to work in your own occupation if you are totally unable to perform all the essential duties of your own occupation.”
Furthermore, the policy will only continue to payout after 12 months if the policyholder cannot do their own occupation OR another job in which they are trained in or experienced in.
Exclusions can be applied as a result of the health information provided before the start of the policy. HIV / AIDS is excluded unless the policyholder contracted it while carrying out their “own occupation”, through a blood transfusion received in the UK, or as a result of a physical assault. This policy does not provide cover for any claim where the incapacity is directly or indirectly the result of COVID-19, SARS and future mutations of Coronavirus.
Deferred periods (the “waiting period”) of 4, 8, 13, 26 or 52 weeks.
Policies can be set up for 2 years or the full term of the policy.
The minimum term of the policy is 5 years. The maximum a policy can run is up to the policyholder’s 70th birthday.
Minimum Eligible Criteria
To apply for a Shepherds Friendly Income Protection policy, policyholders must at least meet the following criteria.
- Aged between 16 and 60 years old at the start of the policy.
- Employed or self-employed.
- A current UK resident and a UK resident for the proceeding 3 years prior to application.
- Subject to tax by HMRC and hold a UK bank or building society account.
- Be registered with a UK medical practise for the proceeding 3 years.
Additional Policy Features
Nuffield Health Benefits
Policyholders have access to the Nuffield Health Virtual GP service which offers unlimited appointments 24/7. 20% off Nuffield Health Gym membership and free access to the Nuffield Health Emotional Wellbeing platform are also included.
In the event that a policyholder dies during the term of the policy, Shepherds Friendly Income Protection will make a Bereavement Payment of £6,000 over six months to the loved ones of the insured. Terms and conditions apply.
New Child Payment
Shepherds Friendly will make a payment of £250 into a Junior ISA account following the birth or adoption of a policyholder’s child. Policies must have already been in place for 45 weeks.
If the policyholder became incapacitated outside of the UK and was in Europe, USA or Australia the policy will pay out for a maximum of 26 weeks. If the policyholder was outside the UK, Europe, USA or Australia when incapacitated the policy will pay up to 13 weeks. Returning to the UK during a claim will not extend these periods.