The 30% Cover Booster will apply for three years to policies taken out between 18 June and 30 September this year; the free amount will be capped at £150,000.
A choice will be provided at the end of the period to continue with the additional cover without underwriting, at which point premiums can be discounted Vitality-status pending.
Phil Jeynes, head of account development at PruProtect, said the insurer recognised the development tied in with the market opportunity pre-gender directive and income minus expenses tax change, but would have introduced it regardless.
He said: “We are encouraging brokers to get in touch with their clients and talk about protection needs and any incentive we can give brokers now is a good thing.
“But we would have done this irrespective of the gender directive and income minus expenses tax changes.”
Criteria for each life on the plan must include; life cover with a minimum of £20,000 Serious Illness Cover and a minimum 15-year term; a maximum age of 55 at the next birthday; and have no significant health or other risk loadings.
Mike Aldridge, sales director at London & Country Mortgages, said the timing more than anything was what made the development good for the firm ahead of the expected impact on premiums post-gender directive and income minus expenses tax change.
He said: “We are launching a campaign to re-engage our clients ahead of the changes and make them more aware, so any additional hook is welcome. And it fits in with this window of opportunity of advisers engaging with client protection needs.”
PruProtect will also be re-pricing its income protection cover by up to 25%. The policy is only available on an own occupation basis.
A case study example would be a £6.82 reduction each month for a non-smoking male with policy details including; occupation class 1, being an accountant; 6-month deferred; age 40 at the next birthday; and a 25-year term.
Peter LeBeau, co-founder of the Income Protection Task Force, said: “The untapped market for some form of income protection (IP) product may well be in excess of 15m people and that market is chronically under penetrated.
“I am pleased to see major providers attempting to tackle this market with an attractive and competitively costed product. IP is referred to by many as the product that the industry has forgotten, so it is gratifying to see such a positive product push.”
