The new cover enables customers to continue to maintain a range of regular financial commitments and living expenses of their choice should they not be able to work and so lose the regular income that would normally cover these payments.
Recent L&G research highlighted that over two thirds of people don’t have any insurance in place which would help them to pay their bills if they were to lose their job.
In addition L&G’s review of the payment protection market identified that consumers were looking to protect their lifestyle, as much as wanting to ensure they could meet the more “traditional” financial commitments, such as credit card, loan and mortgage repayments.
As job security and financial stability can no longer be taken for granted, Lifestyle Cover offers customers wider insurance cover that meets this changing need.
Lifestyle Cover is based on providing a monthly benefit payment that is linked to a customer’s level of income rather than to a specific credit agreement, such as a mortgage or loan. This means that cover may be arranged to protect any number of things that matter to each customer such as mortgage repayments, rent, utility bills, credit card bills, food and/or childcare.
So for a monthly or annual premium, a monthly benefit is paid at the level they have chosen to meet the financial commitments they wish to cover, for up to 12 months, should they not be able to work due to an accident, sickness or involuntary unemployment.
Lifestyle Cover replaces Legal & General’s existing mortgage payment protection product which is designed to cover just the more “traditional” mortgage repayments, for future new business.
Mark Holweger, director for L&G’s general insurance business, said: “Our aim is to continually offer quality products and services to our customers that meet their current and future needs. We believe Lifestyle Cover gives customers, and their families, valuable peace of mind by helping to meet the challenging and changing demands on financial budgets and homes, when it is needed most.
“As a responsible insurer, although we continue to believe that mortgage payment protection insurance provides valuable protection to customers by offering financial support to help meet monthly mortgage payments, the market is changing.
“There is a need to protect wider financial commitments, not just mortgage payments for those unable to work due to accident, sickness or unemployment.
“Unfortunately, as last month’s ONS stats showed, the number of people unemployed continues to rise and is predicted to rise further this year. In addition the number of property rentals grow as people are unable to get onto the property ladder so there is an increased need to cover the cost of monthly rental payments.
“Lifestyle Cover provides customer with the comfort that if they should lose their job, become unwell or have an accident, then the financial commitments that matter to them will be protected. So helping to ease any financial worries and enabling customers to continue to live the lifestyle they want, if they should unfortunately find their circumstances change.”