Legal & General has updated its Income Protection Benefit plan, launching a two-year limited benefit product to meet growth at the low cost end of the market.
The new deal replaces the existing five-year version and will permit multiple claims, with each individual claim allowable for a maximum duration of two years.
The update also includes an enhancement to the replacement ratio used to calculate the maximum benefit based on annual earnings.
New limits will be set at 60 per cent of the first £60,000 of gross annual income and 50 per cent of income in excess of that figure, to give customers with a monthly benefit that equates to a greater percentage of their salary than previously permitted.
Additionally, a ‘price beater’ service has been introduced across the income protection range, aimed at enhancing the firm’s competitiveness where a significant differential exists on a comparative quote from a competitor.
Steve Bryan, director for intermediary business at L&G said if the industry wants to see more people benefit from these products, providers need to drive value for money in the income protection space and broaden the competitive options available to consumers.
“We are constantly looking at ways to make our products more appealing and more relevant to today’s customers, and we believe these updates to our Income Protection Benefit plan keep that customer centricity as the focus; enhancing value for money providing an alternative and competitive choice in the marketplace.”