The lender said that customers who have started their first job are often unable to provide financial evidence to support a claim, as a member’s benefit is usually assessed against their last 12 months of earnings.
The Exeter said for those who started work after full-time education this could be “impossible to provide” and was a “gap in cover”.
The first job promise means if a member claims within their first year of employment the mutual will calculate their income based on an annual salary of the income they have so far earned prior to the claim.
The promise will offer “greater certainty” to members at the start of their claim and makes income protection more appealing to young adults, The Exeter said.
The redundancy premium holiday means The Exeter will waive up to three months of premiums so customers can keep cover in place as they look for employment opportunities.
It is available to employed and self-employed members. Employed persons must be in permanent employment and have been made involuntarily redundant at least six month after the policy is taken out.
Self-employed to qualify need to suffer a form of business failure such as bankruptcy, insolvency, or liquidation at least six months after the policy starts.
Steve Bryan, director of distribution and marketing at The Exeter, 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.”
