View more on these topics

LV= plan aims to shake up MPPI market

ProtectionBy Helen PowLV= has launched a new income protection product which is designed to replace mortgage payment protection insurance.

The product, which Money Marketing revealed was being developed last year, pays out until the policyholder goes back to work, the plan term ends or the policyholder dies.

It has guaranteed premiums and bases disability definitions on own occupation. It offers cover for accident, sickness and unemployment, with level mortgage payment protection and the choice of level or index-linked living expenses protection.

The policyholder can claim as often as necessary and can alter their cover when their life circumstances change, for example, if they move house, have children or get married.

Head of protection Chris McFarlane says: “The market needed a more flexible product that could be tailored to clients’ individual needs and was easy to understand. We believe this will stimulate the market at a time when advisers really need quality protection products to satisfy their clients’ needs as well as supplement their income.

“The average claim is over six years but most MPPI policies cease after either one or two years. This product is an all-encompassing long-term disability cover that can fully protect client’s mortgage payments and also additional living expenses if they so choose.

“For just a small additional investment of time, advisers can help their clients buy quality cover and will be rewarded for doing so.”

Highclere Financial Services partner Alan Lakey says: “This seems an excellent product which will look to steal the middle ground between income protection and PPI and also the standard income protection plan. I am led to believe that the occupations it covers includes bricklayers, plasterers and the like. This will prove a major step forward in the designing of a fair and sensible income protection contract.”


Insurers and wet signatures

Just last month I read that someone has launched a campaign for wet signatures for electronically submitted protection business.

Deficits may run another 10 years

Twenty-seven per cent of trustees with defined-benefit pension schemes in deficit believe the schemes will still be in deficit in 10 years time, according to a survey by Aon Consulting.

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm