Legal & General has announced the completion of a rental protection plan pilot, carried out in conjunction with Mortgage Advice Bureau.
According to the firm, it is the first major protection provider to develop a protection product specifically for the private rented sector.
The plan offers the choice of three products: ‘rental income protection benefit’, ‘rental life insurance’, and ‘rental life insurance with critical illness cover’.
The new plan will allow tenants to increase the amount of cover if their rent increases, if they relocate, or if they change their tenancy agreement – without the need to go back through medical underwriting.
It is currently available through MAB intermediates only.
Legal & General Intermediary director Craig Brown says: “Nearly a quarter of UK households will be renting by 2023 and the protection needs of these families will need to be met by products and solutions specifically designed for them.
“First-time buyers usually receive a protection ‘nudge’ when they seek mortgage advice, but most renters do not benefit from the same prompt. This leaves tenants facing a greater risk of vulnerability due to unforeseen circumstances.
Mortgage Advice Bureau chief executive Peter Brodnicki adds: “The tenant market is completely untapped with the current focus totally on protecting the landlord.
“Tenants have the same outgoings as homeowners, and so keeping both groups in their home should be our priority.
“Legal & General worked closely with us to deliver a product we felt would resonate with tenants, and we have found that it has done that.”