Assurant Solutions has today unveiled a flexible age banded mortgage payment protection product which calculates premiums according to age.
According to the CML the single biggest factor effecting take-up of MPPI is price. By pricing the product according to age, the product from Assurant will prove a far more attractive option to customers. 18-24 year olds could expect a saving of around 35%, 25-29 year olds around 25% and 30-34 year olds around 15%.
Once trials are completed in late November, the product will allow brokers to quote immediately from up to 216 cover options to tailor the product to suit individual customer needs, a level of flexibility not available through any other MPPI provider on the market today.
The age bands are from 18-24, 25-29, 30-34 and so on up to 64 years old. Features include full and any combination of accident, sickness and unemployment cover, a 30 or 60 day initial excess, standard or back to day one cover; and an immediate or three month free payment holiday, regardless of age banding. Assurant also guarantees full ASU cover during the three months free period.
Ian Moffatt, sales and marketing director for Assurant, says: The unprecedented flexibility, choice and transparency provided by this product fully supports the Treating Customers Fairly initiative.
MPPI and other payment protection products have received a bad press of late, have little value in the eyes of the consumer, and consequently are shunned by brokers. This is a damming situation for a product which if sold appropriately holds real value for customers and a valuable source of broker revenue. Our industry has a responsibility to ensure that these products are the best that they can be and that they are tailored to suit individuals needs and sold at an affordable price. Our age banded product is the first of many initiatives we hope to roll out in the coming months which will revitalize and regenerate the creditor insurance market.