The benefit is paid to the next of kin and will be included at no additional cost for both existing customers as well as new ones. It is paid as a lump sum that amounts to six times the monthly income protection payment.
British Friendly says it is the first provider to offer this kind of benefit to both new and existing IP customers regardless of initial policy terms.
Policyholders can nominate multiple individuals to receive a percentage of their death benefit payments by completing and returning a written nomination form to British Friendly.
British Friendly will also be making retrospective payments of the death benefit for members who died from the January 1, 2016.
Iain Clark, Marketing and Distribution Director at British Friendly, said:
“As a mutual, British Friendly always looks to offer product enhancements that are genuinely useful to our members and advisers. By providing an amount of life cover automatically to our income protection policies we are improving customer value through additional membership benefits for both new and existing customers with something that many families will appreciate.”
Tom Conner, Director at Drewberry Insurance, added:
“Ideally anyone who earns a salary and has dependents will have both income protection and life insurance. If the worst happens, this death benefit will be a welcome extra payment to the dependents for those that do have life insurance and give vital financial support for those that don’t.”