A suite of simple products designed to help consumers navigate the financial services market is to include a whole-of-life insurance plan.
The product will be in addition to an easy access savings account; a 30-day notice account; a regular savings account; and a simple-term life insurance product. There are also plans for a simple income replacement product.
The range is outlined in the final recommendations of a report into simple products put together by an independent steering group set up by government.
All products included in the suite will be non-advised and must comply with an agreed set of high-level principles, including product features, language and pricing transparency.
The language used in simple products will be straightforward and consistent and all key terms and conditions will be the same for each product, making them easy for people to understand and compare, the steering group recommended.
In total, the group has put forward eight recommendation for simple products.
Included among them is that a ‘Simple Financial Product' badge will be created and awarded to products that meet the standards, via a robust accreditation process, it said.
The trade associations represented on the steering group - the British Bankers' Association, Building Societies Association and Association of British Insurers - will now work with the British Standards Institution, which will be responsible for the simple product principles, on the development of the products. The Treasury said it will assess progress in a year's time.
Carol Sergeant, chair of the steering group, said: "We have known for a long time that being able to manage your finances effectively leads to increased well-being and a better quality of life, at every given level of income.
"I hope that the simple financial products initiative will make it easier for people to understand and compare the key financial products they need and make good choices with confidence."
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