VitalityLife, formerly known as PruProtect, is launching two income protection policies and a life cover policy which gives policyholders the opportunity to pay for care costs, to the UK market.
Life cover product LifestyleCare Cover has been designed to meet the needs of people who have ill health in later life.
It provides policyholders with lifelong cover that pays out on death or if they suffer an illness which leaves them permanently incapable of looking after themselves.
The product allows a selected proportion of life cover to be accessed early (up to 100%) in the event the policyholder has care needs - this is assessed using activities of daily living.
And 20% of the benefit will be payable on early diagnosis of Alzheimer's, Parkinson's or Dementia, using ABI definitions.
If no benefit is paid early, the full cover amount will be paid under the Whole of Life element. VitalityLife said this could be used to meet inheritance tax, the cost of a funeral or leave an inheritance.
Tony Mudd, divisional director at St James's Place Wealth Management said this product "offers a great opportunity to address this concern [of the cost of care in later life] and opens a whole new protection market for our advisers."
Mortgage Plan
The Mortgage Plus Plan has also been launched, combining Life Cover and Mortgage Incapacity Cover.
Advisers will be able to protect mortgage clients in the event of death or inability to work through illness.
The incapacity element pays up to 24 monthly payments should the client be unable to work, following diagnosis of a list of 29 specific conditions. It allows for multiple claims over the term of the policy.
Customers can also add a Serious Illness cover component for themselves or their children to the plan.
Mark Graves, sales director at Pink Home Loans said: "For many new borrowers, protection is seen as a costly and complex decision which comes at a period of great stress and upheaval in their lives. Simple solutions which aim to provide efficient, affordable cover are the key to growing this market."
Short-term IP
The insurer has also launched a short-term IP option which will pay out for 24 months on each claim and is written on an ‘Own Occupation' basis.
It can be financially guaranteed at point of application and claimants do not need to provide details of their income at claims stage.
VitalityLife said this option may suit clients on a "tighter budget."
Policyholders can also select the Vitality Optimiser option across all of the plans.
These product launches follow parent company Discovery's acquisitions of remaining 25% stake in the holding company, Prudential Health Holdings which owned PruHealth and PruProtect.
The acquisition was part of Discovery's strategy to have the UK as its second home market, and has resulted in the scrapping of the PruProtect and PruHealth names to new brands "VitalityLife" and "VitalityHealth."
