Royal London pays income protection claim before first premium is collected

• Customer received full payment while application was still being underwritten
• Royal London's free cover proposition provides temporary protection before cover starts

Royal London has highlighted the value of free cover after paying a recent income protection claim to a customer whose application was still being underwritten when they became unable to work.

The customer received £1,500 through Royal London's fracture cover benefit and a further £525.21 in income protection payments after being unable to work for a short period following a fractured foot. The customer received a payment despite not having paid a premium because they were protected under Royal London's free cover from the moment their completed application was received.

The case shines a light on an often-overlooked feature of protection policies, with many clients unaware that eligible cover can begin before a policy has been fully underwritten and placed on risk.

The highlighted claim comes ahead of Income Protection Action Week (IPAW), as Royal London encourages advisers to discuss the role protection products can play in helping clients build financial resilience, including during the application process itself.

The recent claim is one of a number of payments made under Royal London's free cover proposition over the last decade. Since 2015, Royal London has paid 26 free cover claims worth a combined £2.5 million to customers and their families. Those payments covered a range of life insurance, critical illness and income protection claims that occurred before a policy had formally gone on risk.

Craig Paterson, Chief Underwriter at Royal London, said:

"When people apply for protection, they're often focused on the cover they'll have in place in the future. But illness or injury doesn't wait for an underwriting decision.

"In this case, a customer was unable to work while their application was still being assessed. Because free cover was already in place, we were able to provide financial support when it was needed.

"It's a feature that can be easily overlooked, but it can make a real difference. These are the moments that show why having protection from day one matters and why advisers should make clients aware of the cover available during the application process.

"Over the last decade we've paid £2.5 million through free cover, supporting customers and their families at some of the most difficult moments in their lives. It demonstrates that protection can provide value from the moment an application is submitted, not just once a policy is formally in force."

Gilbert Boadu, from Wealthmax Financial Advisers Limited, whose client received the free cover payment, said:

"When I talk to clients about IP, the focus is often on what happens months or years down the line if they're unable to work. This case was a powerful reminder that injury doesn't wait for a policy to be issued and whilst I've spoken about Royal London's free cover many times, I was delighted to see it turn from conversation to action when it counted. For any advisers who don't talk about free cover, you definitely should!"

Vicky Churcher, Executive Director at IPTF, commented:

"Cases like this matter because they show income protection working exactly as intended, providing practical financial support when it's needed most. As we approach Income Protection Action Week (IPAW), we'd encourage advisers to use examples like this to start conversations with clients about the full scope of protection available to them, including the safeguards that can apply during the application process itself."

Royal London's free cover proposition is designed to protect eligible clients while their application is being underwritten. Cover begins once Royal London receives a completed application and direct debit instruction, provided certain eligibility criteria are met.

Royal London also offers free cover when existing customers apply to increase or amend their cover. In the event of a valid claim, customers may be covered for the level of protection applied for, even if the updated policy has not yet been formally accepted.

Free cover is included on Royal London's Personal Menu, Business Menu, Relevant Life and Pegasus Whole of Life plans and provides eligible clients with temporary protection at no additional cost while their application is being assessed.