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 level of income, rather than linking it to a specific mortgage or loan.
The benefit will be paid for up to 12 months in the event 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 that 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 monthly benefit is paid at a level chosen by the customer to meet the outgoings they want the policy to cover.
L&G director for general insurance business Mark Holweger 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.”
Separately L&G has also launched an online health assessment tool for protection customers. The free tool assesses their health through a questionnaire, then generates a score which a customer can use to compare their health to 100 people of the same age, race and gender.
Customers can also set goals for improving their health and can subscribe to alerts related to healthier living.
The FSA and the Office of Fair Trading published a joint consultation in November raising concerns about the development of alternative payment protection insurance products which pose the same risk to customers as PPI.