LifeSearch alliance launches 'fail-safe' cover

A "revolutionary, fail-safe and clear" protection product aimed at all corners of the market has been launched following the alliance of LifeSearch and Fortis.

Protection specialist LifeSearch has joined forces with Fortis to launch real life cover, which combines seven protection plans, plus the added option of unemployment cover, all rolled into one package.

Designed to be simple and easy to understand, the product is also set out to be affordable, and minimise confusion and complicated jargon.

Tom Baigrie, managing director for LifeSearch, believes the new product will add a different dynamic to what is currently on the market.

He said: "Consumers need more than life assurance and yet 70 per cent of the industry's sales provide death-only cover. In the past this has been because the alternatives are either too expensive or complicated for most people.

"The product provides more effective protection against almost every eventuality that can destroy your finances. Everyone who does not already have full disability and life benefits should consider real life cover, it is easy to follow and is built to be fail-safe and clear. Compared to the insurance people buy today it is excellent value."

Aimed at protecting against the real risks of modern life within one plan, it is made up of the life fund and the living fund.

The life fund works where if the individual dies or is diagnosed with a terminal illness during the term of the policy, it will pay out a lump sum of their choosing. This works exactly the same way as life cover and is separate to the living fund.

The living fund has four elements including income cover, critical illness cover, child and partner carer's cover, and recuperation cover.

Income cover covers the individual if unable to work because of illness or injury, paying a monthly amount of 1 per cent of your current sum assured, which in total provides cover for up to eight years. Critical illness cover covers serious illnesses, paying an advanced lump sum of 12 per cent of your current sum assured, as well as the monthly income if you cannot work. Child and partner carer's cover includes being unable to work paying 12 per cent of the current sum assured advanced while recuperation cover provides a lump sum of 3 per cent of the current sum assured to pay for physiotherapy or counselling to assist an illness or disability.

The life fund is never affected by any claims made on the living fund, and most importantly, if it does not meet the definition for critical illness, the income claim will pay out instead, as long as the claimant cannot work.

Mark Loydall, director for Leicestershire-based IFA Cambourne Financial Planning, believes the new offering is a simple product designed to meet clients needs.