Salary Gap Insurance, available through London-based Tobell Insurance Services, has been designed to bridge the gap between redundancy and re-employment at a lower income.
It is expected to pay the difference in income between the old and new salary for up to two years, and only pays out once the policyholder has found new employment.
But Highclere Financial Services partner Alan Lakey says the product “does not sound overly exciting”.
He says: “There is a worrying counterpart to this that when you take out temporary cover and when it is done without any specific relation to your needs but just based around the loss on your previous salary, there is an underlying suggestion that you have the cover you need. When in reality it has not been looked at in any meaningful fashion.
“I don’t think it can take away the fact that everyone needs independent advice.”
SUS is set to launch in September.