Legal & General has introduced Protection Choices, a cafeteria style protection plan that has critical illness, accident, sickness and unemployment (ASU) cover and term assurance options.
The critical illness part of the plan covers 24 conditions, including cancer, blindness and heart attack. The minimum premium is £10 and like other critical illness plans, premiums are based on policyholders' age, sex and smoking status. It pays out a lump sum if someone suffers with one of the specified conditions and cover can be taken out on a single or joint life basis.
The critical illness plan can be taken out with the ASU cover that is designed to help homeowners meet their mortgage repayments if they are unable to work.
The maximum benefit that can be paid under the ASU plan is140 per cent of the mortgage payment. Policyholders can choose from five deferred periods that range from four weeks to 52 weeks.
Level and decreasing term assurance options are also available and this is likely to maximise the appeal Protection Choices has for homeowners. Term assurance has been a popular form of life cover for homeowners since endowment mortgages which included life cover fell out of favour.
Critical illness cover only for a 30-year-old non-smoking male on a £100,000 sum assured over a 25 year term would be £20 a month with Protection Choices. Based on the same criteria, premiums would be £21.52 a month with Friends Provident's Select plan, which is a similar menu-style protection product.