A protection policy covering living expenses on top of mortgage payments has been launched by provider LV=.
The Mortgage & Lifestyle Protection product offers cover against accident, sickness and unemployment, with level mortgage payment protection and the choice of level or index-linked living expenses protection all under one plan.
LV= says the product is a unique addition to the protection market and has been launched because it understands that “consumer protection needs do not end when their mortgage does”.
Chris McFarlane, head of protection at LV=, says: “Based on extensive research, we saw that the market needed a more flexible product that could be tailored to their client’s individual needs and that was easy to understand.
“We believe this will stimulate the market at a time when advisers really need quality protection products to satisfy their clients’ needs as well as supplement their income.”
He adds: “An additional bonus of this product is its flexibility, the client can alter their cover when their life circumstances change, for example if they move house, have children or get married.”
McFarlane says all application will be underwritten via its tele-underwriting service. “The combination of medically trained staff and relevant questions helps reduce non-disclosure and speeds up the application process,” he says.
In addition, he says the product could be a perfect alternative income stream for advisers.
“Our claims experience shows that the average income protection claim is over six years and yet most current MPPI policies cease after either one or two years, perhaps when the customer needs them most,” he says.
“LV=’s cover treats customers fairly as it could pay out until they went back to work or until the plan ended.
“This product is an all-encompassing long term disability cover that can fully protect client’s mortgage payments and also additional living expenses if they so choose.
“For just a small additional investment of time, advisers can help their clients buy quality cover and will be appropriately rewarded for doing so.”
020 7034 2636
Oversees £30bn of advised and D2C assets
£1bn business since inception
Considered doing so in 2015
Client communication considerations
Aviva: ‘We are sorry’