Legal & General has launched a short-term income protection product to replace its existing mortgage payment protection insurance product for new business.
The lifestyle cover product provides a monthly benefit linked to the customer’s income, rather than linking it to a specific mortgage or loan. The benefit will be paid for up to 12 months in the event that the customer cannot work due to accident, sickness, or involuntary unemployment.
L&G says the market is moving away from protecting just mortgage payments for those who cannot work as there is need to provide cover for wider financial commitments such as utility bills and the costs of running a car.
The benefit is paid at a level chosen by the customer to meet the outgoings they want covered.
Mark Holweger, director for general insurance business at L&G, says: “We believe lifestyle cover gives customers and their families valuable peace of mind by helping to meet the challenging and changing demands on financial budgets and homes, when it is needed most.”