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.”