LV= has broken this mould with the mortgage & lifestyle protection plan which is aimed squarely at the mortgage market but is equally worthwhile for non-mortgage-related clients.
The plan incorporates many sensible aspects that are usually missing from mainstream products. It offers own-occupation cover to all but the highestrisk occupations, allows applications up to age 65 and only uses guaranteed premium rates.
It looks to reconcile the simplicity of PPI plans with the more sophisticated and essential cover of an income protection plan. It allows a deferred period choice of one, two, three or six months and waiver of premium automatically kicks in during a claim.
Another innovation is the ability to tailor the plan term to suit either the mortgage term or the client’s preference. Most plans insist on an expiry age of 55, 60 or 65.
All applicants will be tele-interviewed which means that only minimal client details need be logged in. This saves time and removes the adviser from arguments over non-disclosure.
Premium rates reflect gender, age, smoker status and occupation and premiums for lower-risk occupations are especially competitive. This is an excellent product which, subject to underwriting, looks certain to take significant market share.
Alan Lakey is a partner at Highclere Financial Services