Legal & General's new policy will provide an income in the event of death or CI
A new product that is designed to provide an income in the event of death or critical illness for individuals or families has been launched by Legal & General (L&G). The Family and Personal Income Plan (FPIP) will be added to the provider's recently launched protection menu, Protection Choices.
Like other income benefit plans, FPIP helps to reduce premiums by insuring a monthly benefit to cover a monthly cost within the policy term rather than a lump sum. Cover also includes additional benefits of guaranteed premium rates, indexed-linked benefits, lump sum children's critical illness (CI) protection and terminal illness cover.
Ronnie Martin, director of protection at L&G, said the inclusion of CI and life assurance in the plan should encourage more people to protect themselves, as it takes the complexity out of getting cover. 'Feedback from advisers suggested the option of basing levels of critical illness or term assurance cover on clients' monthly expenditure commitments can make protection cover more relevant and understandable for some of their clients.
'In addition, the launch of FPIP gave L&G the opportunity to extend the range of benefits available under Protection Choices,' added Martin.
Clients can choose to be protected by both life and CI cover or opt for just one of the benefits under the new plan. For a monthly income benefit of £1,500, a male non-smoker, who is 35 next birthday, would pay £13.75 for 20- year term life cover, or £38.95 for both life and CI cover. Premiums for a female non-smoker, who is 35 next birthday, work out at £11.65 for 20-year term life cover, and £35.65 for combined life and CI cover.
