Shepherds Friendly is one of the oldest mutual insurers in the world.
Founded in 1826, it now has nearly 85,000 members in the UK, offering a broad range of financial services, including income protection insurance.
In 2016, Shepherds Friendly had an income protection pay out rate of 97%, a robust claim pay-out percentage. In 2018 it was 95.8%. With a Defaqto five-star rating, IP from Shepherds Friendly is highly regarded.
Shepherds Friendly new business annual premium equivalent, an industry standard measure, was £7.89 m in 2018 representing an increase of £1.59m over 2017.
They are a mix of several groups and have expanded to meet demanding levels of customer service. They also offer investment opportunities.
Shepherds Friendly. Your At-a-Glance and Comparison Guide
In our opinion, income protection insurance is a must-have. If you are self-employed as a Contractor, a Director or in a senior position in your job, that proverbial rainy day may be a long way from your everyday considerations
However, life events occur when we least expect it. If an absence from work because of illness or an accident stops you from working, your regular income will be lost.
Protecting your earnings means that you can keep on meeting monthly household bills and paying your mortgage without going into debt or dipping into your savings.
Shepherds Friendly offer a flexible and affordable range of income protection policies.
Here are some key points about Shepherds Friendly:
- Shepherds Friendly offers “own occupation” cover, enabling you to claim if you are unable to carry out your own profession or job, rather than any occupation.
- With Shepherds Friendly, you’ll be able to amend your policy to take into consideration lifestyle changes, such as an increase in your mortgage payments, or the birth (or adoption) of a child.
- Your premium payments will be waived automatically if you claim. You may also have a deferred period as short as one day.
- Although they have a higher pay out rate, Shepherds Friendly only offers benefits of up to £49,000 per year. If you earn more, you may wish to ask Black Lion Insurance about alternative IP insurers.
- You’ll be able to take a career break with this insurer, suspending your monthly premiums for up to 24 months (with a minimum of 3 months).
- Shepherds Friendly has a good reputation for offering cover to those in lower earning occupations and people in professions considered to be higher risk.
- You will benefit from up to 70% of your gross earnings to replace lost income.
Shepherds Friendly. Overview of Key Policy Details
|Policy Type||Income Protection|
|Premium Type||Age banded. Premiums will increase year on year in line with your age.|
|Maximum Claim Duration||Unlimited
(to your policy’s cease age or your death)
|Incapacity Definition||Own Occupation|
|Deferred Period||Day 1/ 1 week/4 weeks/ 8 weeks/ 13 weeks/ 26 weeks/ 52 weeks|
|Indexation||Optional. Increases in line with inflation can only start after the policy is one year old.|
|Waiver of Premium||Included|
|Maximum Cover (% of income)||Up to 70% of your gross earnings.
Up to £49,000 a year benefits paid.
|Minimum Entry Age||16 years|
|Maximum Entry Age||60 years|
|Maximum Policy Term||54 years (until your 70th birthday)|
|Guaranteed Insurability||Yes. Capped at £6,000 per year.
Marriage or civil partnership
Every 3rd anniversary of your policy
|Policy Exclusions||Dangerous activities, non-medical cosmetic surgery, injuries as a result of war or invasion.|
Some Key Points About Shepherds Friendly. Plus, additional benefits to help you recover.
Entry Age. Its entry age of 16 years old is younger than most insurers.
Overseas Travel and Residency. This insurer will pay out if you are living in Europe, USA or Australia for up to 26 weeks. Claims from other countries will pay out for up to 13 weeks.
On the whole, Shepherds Friendly does not base its premiums on the risk level of your occupation (hence the cap on the maximum amount that can be claimed).
Working Persons Benefit and House Persons Benefit offer reduced benefits for reduced payment terms.
This insurer offers access to a network of support services. If you claim, you will have access to psychologists, counsellors and physiotherapists who can help you with your recovery.
Evidence and Proof. As with all income protection insurers, you will need to offer proof of incapacity, such as medical reports, as well as proof of earnings for the last 12 months.
Do YOU need advice from Black Lion Insurance?
Our aim is to help you make an informed choice on insurance products and we have the financial expertise and experience to help you do just that.
In our view, Shepherds Friendly is a very good provider of income protection insurance. With a high rate of claims pay out, they could be a good choice; however, their pay outs on an annual basis are lower than the other insurers on our “books”.
Don’t make any decisions about IP until you have spoken to Black Lion Insurance. With our in-depth knowledge and experience about all forms of insurance, we’d be happy for you to take all the time you need to make the right decision for you.
We think that taking insured, qualified advice is very important. Finding the best cover for you, your circumstances and your family will ensure that should you need to claim, you’ll have adequate insurance to make sure that your mortgage is paid and that you can keep paying the bills.
So, to answer your question – yes, you do need our advice, at least in our opinion. We may be able to negotiate some excellent price options for you, too.
Should the worst happen, income protection insurance could be the best cover you ever bought, but it has to be the right one.
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.