TL;DR
As expert protection advisers, we know that your income is the engine of your financial life. It pays the mortgage, covers the bills, and funds your future. But what happens if that engine suddenly stops due to illness or injury?
Key takeaways
- No Shareholders: Holloway Friendly is owned by its members (the policyholders). This means there are no external shareholders demanding dividends.
- Member-Focused: Profits are used to benefit members, either through better policy terms, enhanced member services, or by ensuring the society's long-term financial strength.
- Shared Values: The ethos is one of community and shared support, which often translates into a more personal and supportive claims experience.
- It pays a regular, tax-free monthly benefit.
- It continues to pay out until you can return to work, the policy term ends (typically at your retirement age), or you pass away, whichever happens first.
As expert protection advisers, we know that your income is the engine of your financial life. It pays the mortgage, covers the bills, and funds your future. But what happens if that engine suddenly stops due to illness or injury? This is where income protection insurance becomes the most crucial part of your financial safety net.
In the UK market, Holloway Friendly stands out as a specialist provider with a unique history and a dedicated focus on protecting people's earnings. They aren't a giant, one-size-fits-all insurer; they are a mutual society with a legacy of providing high-quality, flexible income protection, often for individuals that other insurers may overlook.
This guide provides a definitive look at Holloway Friendly income protection for 2026. We will explore their products in detail, explain who they are best suited for, and walk you through everything from application to claim, ensuring you have the expert knowledge to make an informed decision.
Holloway Friendly Overview
Who are Holloway Friendly?
Founded in 1880 by George Holloway, the organisation's original purpose was to provide a way for working people to protect themselves against loss of income through sickness — effectively inventing the concept of income protection insurance.
A key differentiator for Holloway Friendly is their structure. They are a mutual society, not a publicly listed company (PLC).
What does being a mutual society mean for you?
- No Shareholders: Holloway Friendly is owned by its members (the policyholders). This means there are no external shareholders demanding dividends.
- Member-Focused: Profits are used to benefit members, either through better policy terms, enhanced member services, or by ensuring the society's long-term financial strength.
- Shared Values: The ethos is one of community and shared support, which often translates into a more personal and supportive claims experience.
Today, Holloway Friendly remains a specialist in the income protection market, renowned for its strong 'Own Occupation' definition of incapacity and its willingness to consider cover for occupations and individuals that larger insurers might deem too high-risk.
What is Income Protection?
Income Protection is a long-term insurance policy designed to replace a significant portion of your lost earnings if you are unable to work due to illness or injury.
- It pays a regular, tax-free monthly benefit.
- It continues to pay out until you can return to work, the policy term ends (typically at your retirement age), or you pass away, whichever happens first.
Think of it as your own personal sick pay scheme, especially vital if you are self-employed or if your employer's sick pay is limited.
| Insurance Type | What it Does | Key Purpose |
|---|---|---|
| Income Protection | Provides a replacement monthly income if you can't work due to illness or injury. | Replaces lost earnings to cover day-to-day living costs. |
| Critical Illness Cover | Pays a one-off, tax-free lump sum if you are diagnosed with a specific serious illness listed on the policy. | Clears major debts (like a mortgage) or covers one-off costs (like home adaptations). |
| Life Insurance | Pays a lump sum or regular income to your loved ones if you pass away during the policy term. | Provides financial security for your family after your death. |
Income protection is the only policy designed to cover any medical condition that stops you from working, providing a sustainable income month after month.
Policy Details
Holloway Friendly offers products like the Classic Plus Plan and My Sick Pay, tailored to different needs. Their core offerings provide comprehensive long-term income protection with flexibility.
Benefit Amount
With Holloway Friendly, you can typically insure up to 60-65% of your gross (pre-tax) annual earnings.
- Maximum Cover: Typically up to £65,000-£100,000 per year (around £5,416 per month), depending on the plan and proof of earnings.
- Why not 100%? Insurers cap the benefit below your full salary to provide a financial incentive to return to work when you are medically able. As the benefit is paid tax-free, this often equates to a much higher percentage of your usual take-home pay.
For the self-employed or company directors, income is usually calculated based on your average salary and dividends over the last 1-3 years, or your net profit.
Deferment Period
The deferment period is the time you must be off work before benefits start. Holloway Friendly offers options including 1, 4, 8, 13, 26, or 52 weeks.
How to Choose:
- Align with existing sick pay or savings: Shorter for less support (e.g., 4 weeks), longer for lower premiums (e.g., 52 weeks).
- Cost Impact: Longer deferment lowers premiums significantly.
Definition of Incapacity
Holloway Friendly uses the 'Own Occupation' definition as standard, paying out if unable to perform the material duties of your specific job.
- Superior to 'Suited Occupation' or 'Any Occupation', which are more restrictive.
- Adviser Insight: Prioritize 'Own Occupation' for career-specific protection.
Cease Age and Term
Choose a cease age up to 70. Policy term minimum 5 years.
Key Features
- Guaranteed or Reviewable Premiums: Fixed (guaranteed) or adjustable (reviewable).
- Indexation: Optional increase with inflation (e.g., RPI, max 10%).
- Waiver of Premium: After 52 weeks of claim (some plans immediate in terminal illness).
- Member Assistance: 24/7 GP, mental health support, etc., via partners like HealthHero.
Who It's For
Ideal for self-employed, freelancers, contractors, and company directors due to flexible underwriting and 'Own Occupation' cover.
Holloway offers Executive Income Protection for directors: Company-paid, tax-efficient, up to higher % of earnings.
Costs
Premiums vary by age, health, occupation, cover, deferment, and cease age. Examples (indicative, non-smoker, good health, to age 65):
| Age | Occupation | Benefit | Deferment | Est. Monthly Premium |
|---|---|---|---|---|
| 30 | Accountant | £2,500/month | 13 weeks | £35 - £50 |
| 40 | Plumber | £2,000/month | 13 weeks | £55 - £75 |
| 35 | IT Contractor | £3,000/month | 13 weeks | £45 - £65 |
Prices start from £5/month; get personalized quotes.
Underwriting
- Application with full disclosures.
- Possible GP reports, screenings.
- Outcomes: Standard, exclusions, loadings, postponement, or decline.
Duty: Full honesty under Consumer Insurance Act.
Claims Process
Strong reputation; high payout rates with fast response (99.8% contacted in 24hrs).
- Contact team (0800 0931 535 or online).
- Submit form and evidence (medical, income).
- Assessment by trained team.
- Payments post-deferment, monthly.
Exclusions
- Drug/alcohol misuse, self-harm, war, pregnancy, non-disclosure.
- Underwriting-specific added.
FAQs
Is the benefit taxable?
Pre-existing conditions?
Job change?
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