National Friendly has reported a record sales month in July 2024 for its accident-only income protection (AOIP), launched in April 2021.
Sales in July 2024 were 23% up on its previous record month in June 2024, following product enhancements made in June.
Accident-only income protection covers people financially if they are medically certified as unable to carry out the main duties of their occupation, due to an accident, and therefore suffer a loss of earnings.
Depending on their selection of benefits on taking out the policy, customers can choose a benefit of up to £6,000 a month.
National Friendly’s data showed that falls (13%), sports injuries (11%) and car accidents (8%) were the most common claim reasons.
Hazardous pursuits made up 6% of claims with football (36%) and rugby (28%) the main reasons.
In addition, working with horses, stock car racing, bike riding, skateboarding, hockey and jet skiing all featured under hazardous pursuit claims too.
The average length of claim across all valid AOIP claims was 4.2 months, with 97% of claim decisions being made within three working days.
Harris Khan, director at adviser firm, Life Without Lemons, said: “National Friendly is constantly updating its products to better meet the needs of our clients.
“By offering affordable, easy-to-apply accident-only protection, we’re helping people who don’t have coverage get the protection they need within their budget.
“Since accidents are a big reason people can’t work, this kind of income protection is really valuable.
“The addition of premium-based quotes and level cover options is a great improvement that should make it easier to share and use the product.”
Graham Singleton, CEO of National Friendly, said: “Accident only income protection offers a solution to a huge, underserved part of the population, who may have found Income Protection difficult to obtain due to health reasons or affordability.
“As there are no health questions or medical underwriting on the plan, it is an incredibly quick and simple application and offers cover without the need of any medical evidence.
“We’re big believers in full Income Protection but we also recognise that not everyone can afford it.
“As cost-of-living pressures persist for over 55% of households (May 2024 ONS stats) AOIP gives advisers an option that helps clients manage their money more effectively without hurting their disposable income.”
