Zurich has launched two new mortgage protection products designed to pay out in the event of death, critical illness or if the policyholder cannot carry out their own occupation.
The new products, decreasing mortgage cover and level protection plan, allow consumers to add an integrated income protection option. The combo would then provide a cash sum, to pay off the mortgage, in the event of death, terminal illness or critical illness, or an income, to cover monthly mortgage payments, if the policyholder cannot carry out their own occupation.
Zurich says the income protection element is 30 per cent cheaper than ordinary income protection products because it is integrated with critical illness and will stop providing an income if the policyholder is diagnosed with a critical illness and receives a lump sum. The insurer says the application process takes around 15 minutes.
Consumers can choose guaranteed or reviewable rates and other options are available such as joint life separation, critical illness cover for children, a wide range of guaranteed insurability options linked to existing policy conditions, a comprehensive list of critical illness conditions, a range of trust options and guides and a wide range of indexation options.
Zurich has also launched a unique free cover arrangement for mortgage business between exchange of contracts and mortgage completion.
Zurich UK Life protection management director Peter Hamilton says the company is keen to build its presence in the adviser mortgage and personal protection markets with innovative propositions.
He says: “We all recognise that there is a protection gap in this country and as a provider we intend to do all we can to help advisers address that gap. As well as enhancing our product range with new features we are also investing heavily in our e-capabilities to make it easier for advisers to do business with us.”