"There is an income protection gap in the UK which could widen as people cut back on spending due to the economic impact of Covid-19."
The new products include Low Start Income Protection and Executive Income Protection.
Low Start Income Protection shares many of the same features as Legal & General’s Income Protection Benefit product. Premiums start lower than traditional IP, helping to address initial affordability. They increase annually, with no change in cover during the term.
Executive Income Protection is designed to provide cover for small business owners and individual employees on higher salaries. It allows SMEs to pay a monthly benefit to an employee if they are unable to work due to illness or injury. Employers can insure an individual employee’s earnings (up to 80%), dividends and P11D benefits, and additional cover can be arranged for other costs such as pension and National Insurance contributions.
The two products join Legal & General’s existing IP products: Income Protection Benefit and Rental Income Protection Benefit. A variety of benefits are automatically included in all IP plans, such as access to Nurse Support Services, which offers advice and support from trained nurses across six key areas, and Rehabilitation Support Service, which provides access to a specialist team who will build a structured return to work programme.
Craig Brown, director of intermediary insurance at Legal & General, said: “With just one in 10 people protecting their income, it’s clear there is an income protection gap in the UK which could widen as people cut back on spending due to the economic impact of Covid-19. However, the pandemic has also led to growing awareness of the crucial need for people and businesses to protect their income in case of illness or injury.
“The launch of Executive Income Protection and Low Start Income Protection enhances our IP offering and gives advisers an even better opportunity to help their clients understand the importance of financial resilience. Our new proposition makes IP more accessible and provides greater choice for people to get cover that meets their individual needs.”
