A protection policy offering seven different levels of cover including critical illness and income protection under one plan has been launched by LifeSearch.
The provider says in an ideal world everyone who needs protection would own one single comprehensive policy, and it says Real Life Cover (RLC) provides this.
RLC, set to launch on 8 July through new UK life firm Fortis, is made up of same-size pots of money: the Life fund and the Living fund.
The Life fund works the same way as life cover, while the Living fund combines four elements – income cover, critical illness cover, child and partner carer’s cover and recuperation cover.
LifeSearch says claimants can make as many claims as they like, as long as there is still money left in their fund. It says whenever the fund is paying the claimant a monthly amount the premiums are paid for them - it doesn’t come out of their fund.
In addition, it says the Life fund is never affected by any claims made on the Living fund, so claimants still get the full amount on death or terminal illness.
Finally, LifeSearch says if a claim does not meet the definition for critical illness, the income claim will pay out instead, as long as the claimant cannot work.
LifeSearch says RLC has been four years in the making and was initially conceived as an alternative to income protection.
Tom Baigrie, LifeSearch managing director, says: “Consumers need more than life assurance and yet 70% of the industry’s sales provide ‘death only’ cover.
“In the past this has been because the alternatives are either too expensive or complicated for most people.
“From today, Real Life Cover provides more effective protection against almost every eventuality that can destroy your finances.
“Everyone who does not already have full disability and life benefits should consider Real Life Cover, it's easy to follow and is built to be failsafe and clear.”
Graham Harvey, managing director of protection at AXA, says the product is a good idea but asks whether the ‘bundled’ nature of the product will provide real value for money for the consumer.
“If the client does not need some of the cover available on RLC, are they still getting value for money?
“But this sounds like a good idea because a lot of people still don’t take out the cover they need. This could be quite valuable.”
LifeSearch says for those worried about the safety of their jobs, RLC offers the optional extra of Unemployment or Extended Carer’s cover. This means if a policyholder is made unemployed through no fault of their own, or if they give up work to become a registered carer for a parent or parent-in-law, they are entitled to 1% of their Living fund every month for up to one year.
Consumers can contact LifeSearch on 0800 316 4242 or at www.lifesearch.co.uk
020 7034 2636
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