British Friendly launches terminal illness benefit.

British Friendly launches terminal illness benefit

Claims process also enhanced

Option to receive an early payment of death benefit and bereavement benefit around diagnosis of terminal illness

Income protection mutual British Friendly has added terminal illness benefit (TIB) to its mutual benefits offering.

With TIB, British Friendly members will have the option to receive an early payment of death benefit or bereavement benefit lump sum payment if they or their partner, spouse or child is diagnosed with a terminal illness.

Available to new and existing members at no extra cost, the lump sum payment will equate to 26 weeks of income protection benefit for members who are diagnosed with a terminal illness or 13 weeks of the member's income protection if their partner, spouse or child (up to age 18) is diagnosed.

In light of the recent clarification by the Department of Work and Pensions that insurance benefits will not be means-tested in conjunction with Universal Credit, British Friendly has also enhanced its claims process to give claimants the option to have part or all of their income protection benefit paid direct to their mortgage lender.

"This is another part of our drive to ensure advisers' clients have as much protection through our proposition as possible, both for themselves and their families," said Nick Telfer, product and marketing director at British Friendly. "We have launched a number of benefits over the last two years that complement the core income protection policy, such as care assistance benefit and bereavement benefit, and we are already seeing members claiming on these important benefits. It is also important to us that our improvements help existing policyholders not just new applicants. As a friendly society our main concern has always been to pay claims and return value to our members."

Adviser view

Ian Sawyer, managing director at adviser firm Assured Futures said: "British Friendly's Income Protection proposition is becoming one of the most comprehensive ways a client can cover themselves through one policy. It's so much more than just your usual Income Protection cover; members and their families are covered for a wide range of eventualities providing greater peace of mind. The mutual benefits programme is taking income protection into another stage of development that makes it more relevant than ever."