An income insurance product that covers customers’ financial commitments in a similar way to payment protection insurance is being launched by Paymentshield.
IncomeShield provides protection for a policyholder’s financial outgoings and can be sold as a standalone product or in conjunction with other insurance and protection products.
Tim Johnson, chief executive of Paymentshield, says: “Advisers have been crying out for a flexible income insurance product that is not tied to a mortgage or loan but that can be used to cover outgoings including rent, Council Tax and school fees.
“IncomeShield fulfils this requirement and comes without the negative associations of PPI. It is coming to market as customers are searching for ways to guard their income.”
The policy covers outgoings of up to £2,000 a month but is restricted to 65% of a policyholder’s income. Up to 25% commission is payable on each sale.