Out with the old... In with the Gold...
20 April 2015
“Old standard” ASU, MPPI & STIP policies are superseded by “Gold Standard Short Term Income Replacement (STIR)”, launched by DMS on 15th April, just as the take up of “Income-protecting” type insurances has fallen to its lowest for many years.
Gold Standard STIR is not a brand new policy, but the latest evolution in a continuous series of policy enhancements by DMS over 11 years. Even more are in the pipeline for 2015. Even before the latest improvements, in 2014 the policy had a published record 91.92% claims paid. This is higher than the average published industry standard for Income Protection, which is a Term policy regarded as the best possible cover for those who can afford it.
DMS is not aware of providers of ASU or MPPI type policies (i.e. monthly/annually reviewable rather than Term policies) publishing their claims paid % and this does suggest the figures could be embarrassing. Gold Standard STIR is reviewable, but only annually.
John Tegg, leader of the team at DMS who designed the new policy, set out from the start to make the payment of claims and their administration the central part of the business, rather than sales.
Gold Standard STIR is set to transform the old standard ASU and STIP market for Advisers, with no less than 52 outstanding features which put it in a class of its own. It replaces up to 65% of pre-tax income, covering:-
1: Illness or Injury, the same risks as Income Protection, but more comprehensively, or
2: Redundancy or Business Closure with or without insolvency, or
3: Both types of cover, 1 and 2 combined.
Also, Clients can tailor cover to suit their budget with either a 12 or 6 month limit for each claim, and also choose between the fully featured “Plus” policy or slightly less comprehensive “Value” policy.
These are some of the unique ways DMS achieves its claims-oriented culture:-
- Just a few simple medical questions enable any “pre-existing” medical conditions to be shown on the Certificate. Unlike any old standard ASU-type policy, Clients know if any conditions are initially excluded
- However, pre-existing conditions will be covered as long as there have been no symptoms or treatment in the 12 months before the start date. Also, there are two ways in which specified excluded conditions will be covered. Firstly, if there have been no symptoms or treatment during the 24 months prior to a claim, or alternatively no symptoms or treatment during the 24 months from the start date. IP policies will not offer this generous approach
- Back problem claims are allowed for up to 3 months without the very restrictive “old standard” ASU requirement for radiological evidence of injury. (After 3 months, this type of evidence is likely to be available, enabling the claim to continue)
- Stress, depression or anxiety claims are also allowed for up to 3 months without the very restrictive “old standard” ASU requirement for referral to a Consultant. (After 3 months, this type of evidence is likely to be available, enabling the claim to continue)
- £100/day Hospitalisation benefit up to £1,000 is included, which is rarely available with IP, and is even payable during the “waiting period”
- Avoidance of potential Injury or illness claim refusals and bitter arguments due to “old standard” ASU or STIP requirements of being unable to carry out “any work for which you are suited from experience or training”. Instead, claims are paid if “you are unable to carry out your normal occupation”
- Injuries due to hazardous hobbies, sports, pastimes or occupations are not excluded and can be shown as covered on the Certificate. There is no premium loading, whereas with IP there may well be exclusions or a premium loading
- Initial Exclusion Period is only 30 days for Redundancy/Business Closure, waived for a new mortgage or switching from another insurer
- Benefit is paid on top of any employer’s sick pay, and even if full salary is being paid, whereas IP will not.
- Business Closure with or without insolvency is covered for business owners
John Tegg said, “It’s taken 11 years of development, but with Gold Standard Short Term Income Replacement, finally Advisers can forget all their frustrations and the risks of complaints with 'old standard' ASU and STIP. We’re extremely proud of our 92% claims paid record.”
Established in 1995, DMS is a specialist provider of Illness, Injury and Redundancy or Business Closure Insurance to Independent Financial Advisers, Mortgage Intermediaries and Networks, but NOT directly to consumers.
First year premiums discounted by up to 15% are available for a limited period, and IFA’s and Mortgage Advisers can find out more at http://www.dms4stir.co.uk
Please address any queries or requests for further information to John.Tegg@dms4STIR.co.uk
