Permanent, the protection product division of Liverpool Victoria, has introduced a cafeteria-style mortgage protection package called mimi.
There are four options critical illness cover, life cover, income protection and mortgage payment protection.
Mimi is designed to encourage borrowers to take out cover for all their needs, even where their mortgage lender does not make this type of insurance compulsory.
The critical illness element covers 31 conditions and has three levels of cover. The first level includes permanent total disability, the second excludes it and the third is permanent total disability cover only. It is available on both a level and decreasing term basis.
Three options are also available under the mortgage payment protection element. The integrated health option is designed to be taken with the critical illness cover, the health version is available in full and budget forms and there is also an unemployment only option.
Income protection pays a maximum of 50 per cent of income and benefits are available on a level or index-linked basis, where benefits rise in line with the retail prices index.
Scottish Equitable and Friends Provident also have cafeteria-style protection plans aimed at homeowners, so mimi is not a new concept. However, mix and match protection plans are useful, especially now endowment mortgages which have an element of life cover have fallen out of favour.
Mimi also seems competitively priced. A 30-year old non-smoking male requiring critical illness cover only for an £80,000 mortgage over a 25-year term would pay £13.28 with Permanent and £16.96 with Scottish Equitable.