The Exeter has announced the addition of two new features to its Income First product, providing greater support for members who are likely to find themselves in two different vulnerable circumstances.

These include customers who have recently started their first job and are unable to provide the required financial evidence to support their claim and customers who have suffered involuntary redundancy or business failure.

Typically, when an IP claim is made, a member’s benefit is assessed against their previous 12 months of earnings. However, for those who have just started work following full-time education, this can be impossible to provide, exposing a gap in cover.

With The Exeter’s new ‘first job promise’, if a member claims within their first year of employment, The Exeter will calculate their income based on an annual salary of the income they have so far earned prior to the claim.

The provider claims its new feature offers greater certainty for the member at the point of claim and is designed to make income protection a more appealing prospect to young adults who are entering employment after completing their full-time education.

The second feature is the ‘redundancy premium holiday’. If a member is made redundant and is facing financial difficulties, The Exeter will waive their premiums for up to three months, ensuring they can keep valuable cover in place as they look for new employment opportunities.

The feature is available to both employed and self-employed members. An employed person must be in permanent employment and be made involuntarily redundant at least six months after the policy begins to qualify.

If the member is self-employed, they will qualify for the feature if they suffer a form of business failure – such as bankruptcy, insolvency, or liquidation – at least six months after the policy starts.

The redundancy premium holiday is intended to give members greater certainty during times of financial difficulty and the ability to retain full cover, benefits, and access to value-added services, such as HealthWise.

Steve Bryan (pictured), the Exeter‘s director of distribution and marketing, said: “For those without access to employer sick pay benefits, or those just starting their careers, a reduction in income due to illness, injury or involuntary redundancy can have an immediate impact on their financial wellbeing and potentially lead to them being in a position of vulnerability.

“The enhancements introduced on our Income First product are designed to provide greater certainty to members who find themselves in these situations and highlight the importance of income protection in providing peace of mind to workers of all ages and occupations.

“The changes also support our alignment to the new Consumer Duty which requires firms to provide an appropriate standard of support to retail customers to meet their needs, including those with characteristics of vulnerability.”