Royal London has introduced a ‘middle ground’ payment option to its income protection range.
Consumers who do not want or cannot afford a full-term payment period but are after more cover than a short-term one-year or two-year option will be able to opt for a five-year payment plan.
Royal London hopes this will make the cover more flexible and offer more comprehensive cover to all kinds of consumers.
The new product will have the same features as Royal London’s existing income protection range, including deferred periods, cover up to 65 per cent of the first £15,000 and up to 55 per cent of the remainder, up to £25,000 a year, and fracture cover and hospital payments.
Christina Rigby, product specialist at Royal London, said: "Losing an income due to illness or injury is one of the biggest risks people can face, so it’s important to have cover that can be tailored to individual requirements.
"Our five-year payment period introduces additional flexibility and means our income protection is suitable for a wider range of budgets and needs."
Commenting on the product launch, Emma Walker, chief marketing officer at LifeSearch, said: "Yet again Royal London has listened and provided a solution. We speak to many families who want to protect their income but due to the cost, it can exceed budget so they often take a short term fix which leaves them with something rather than nothing at all.
"Royal London have come up with another great solution and a middle ground to protect an income longer than short term and provide 5 years of excellent coverage on 55 per cent annual earnings and the great news is it’s just as affordable as short term."