View more on these topics

L&G replaces MPPI with short-term income protection

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.

Aviva and Nationwide have also launched short-term income protection products over the last year.

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.


Take a gap year from tax

The problem. A client over 55 is looking to take a career break. As a higher-rate taxpayer, she normally has the income and the allowance to allow her to make a significant pension contribution but as she will not be earning a salary, what is the most efficient way to use the tax relief available […]

Defining factors

With the mortgage market review consultation period now over, the horse-trading between the intermediary representatives and the lending community now begins in earnest. The heart of the discussion will clearly be over advised sales and what can be interpreted as execution-only, especially in the call-centres and non-client-facing operations of the mortgage lenders. I recently read […]


Merchant House shares suspended

The board of Merchant House Group has announced that it has requested the temporary suspension of its shares from trading on Alterntative Investment Market. In a stock exchange announcement this morning, the group said the move was pending the outcome of a review of its financial condition with a view to determining “whether or not […]


Call for IFA day of action over FSCS levies

IFA firm Informed Choice has resurrected its lobbying campaign to reform Financial Services Compensation Scheme funding and is organising a “day of action” next week to highlight the current broken model. The FSCS Levy Action Group was formed by Informed Choice last February after some advisers saw huge increases in their FSCS bills. An open […]


School fees planning

Jeremy Pearson is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. Many parents value the standard of education offered by […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

Leave a comment