Cirencester Friendly has introduced a minimum benefit guarantee across its Income Assured and My Earnings income protection products.

The individual income protection specialist said the guarantee, capped at £1,500 a month, is now available to both new and existing members on both products and will apply to all new claims.

The guarantee will come into force at the point of claim where there is a discrepancy over earnings.

For example, where a claimant has cover based on monthly income of more than £1,500 but is no longer earning that amount, they will be paid a minimum of £1,500 a month.

Where a claimant is covered for a monthly amount of less than £1,500, there will be no change to their payments.

Cirencester Friendly said the move was intended to provide greater certainty for members whose circumstances have changed or whose income fluctuates.

It said this was particularly relevant for self-employed workers and those in the gig economy, whose monthly income can vary substantially.

Alan Waddington, director of distribution at Cirencester Friendly, said: “Working lives have changed significantly over the past decade in the UK. Approximately 4.4 million adults in the UK are self-employed, with about half of those working as freelancers.

“In addition, one in six adults work in the gig economy at least once a week. These trends mean incomes for many are a lot more fluid than they used to be.

“If we are to continue to be there for Members when they need us the most, it’s vital that we recognise and adapt our products to reflect working life as it is today.

“Offering them a guaranteed minimum payment means they can still cover the everyday essentials and reduce any friction or stress around their claim.”