Cirencester Friendly has announced that from 01 September 2018, new business introductory commission rates in respect of their Income Assured Enhanced and My Earnings Insurance individual income protection contracts will be increased.

Income Assured Enhanced and My Earnings Insurance with guaranteed annual escalating premiums will both be increased to 200%, whilst My Earnings Insurance with guaranteed level premiums will be increased to 165%.

Following Adviser feedback the decision was made to increase initial commission from the outset and remove renewal commission. The earnings period remains unchanged at three years.

There will be no increase in premium rates and all cases that complete on or after 01 September will be paid on the new commission rates.

Commenting on the changes, David Macgregor, Commercial Director at Cirencester Friendly said:

“We rely solely on Advisers to introduce new Income Protection business to the Society and we want to make sure they are fairly rewarded for recommending Cirencester Friendly.

 “In addition to these improved commission rate changes, we continue to work on developing opportunities for Advisers to meet the needs of their clients and have two further developments scheduled for release over the coming months”.

The Income Assured Enhanced contract, which was launched in 2017, follows the traditional ‘Holloway Principle’ which combines income replacement insurance with an electable option to build a capital sum payable at the maturity of the contract. As it contains a capital option the contract is classified as a retail investment.

My Earnings Insurance, launched in 2014 was the Society’s first pure income protection contract. It provides a wide range of options allowing advisers to tailor the contract to the client’s needs. It is available through financial advisers as well as mortgage and general insurance brokers.