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02 Feb 2010 09:00
Legal & General has launched its new and improved Income Protection Benefit Plan, which is 5 star rated by Defaqto. Income Protection is a lifestyle protector and may be suitable for anybody who has an income. It’s widely recognised that people don’t have as much income protection as they should do and that there is a huge income protection gap*. Legal & General’s new product is available online, via it’s new business system OLP Connect, and completes the Legal & General menu proposition.
Bernie Hickman, Legal & General’s Managing Director for Protection said: “We’re offering advisers and their clients flexibility and value for money with a five star income protection product and a full menu proposition. In the course of completely overhauling our income protection offering, we have listened to advisers’ concerns over income protection definitions and removed the ‘any’ occupation definition altogether. We’re also guaranteeing that all policyholders get an ‘own’ occupation definition by introducing this for 12 months on claims for occupation classes 3 and 4, making it easier to claim. This will be more consumer-friendly and make it easier for advisers to market these plans to their clients. Within the Menu arena, no other provider can match us for our comprehensive range of benefits and options that can be tailored to individual client circumstances.”
Peter Le Beau, co-chair of the Income Protection Task Force, commented: “I am very impressed by the efforts Legal & General have made to produce a competitive and attractive IP plan. I also applaud their transparency in revealing their claims paid ratio. This excellent figure will reassure customers that valid claims will be paid.”
Legal & General paid 90.4% of income protection claims in 2008.
Further product enhancements include:
- Increased maximum benefit from £120,000 to £200,000 per annum
- Increased expiry age from 65 to 70
- New Guaranteed Insurability Options to make it easier for people to increase their cover in line with their earnings
- Removal of all exclusions except for drugs** and alcohol
Legal & General’s menu proposition, now including the new online income protection product, allows advisers to tailor a protection package to suit individual clients’ needs. It offers value for money through competitive pricing across all products and further discounts for clients applying for multiple products. It also offers flexibility in the form of split sums assured, which means that clients can choose different sums assured for term assurance and critical illness cover.
Legal & General is currently the Most Trusted Income Protection Provider, as voted by readers of Moneywise magazine.
Notes to Editors:
*According to the Swiss Re Term & Health Watch report 2009, the income protection gap is £190 billion a year.
**Exclusion does not include drugs taken under the direction of a registered medical practitioner
Legal & General Assurance Society Limited is authorised and regulated by the Financial Services Authority (FSA). Registered office: One Coleman Street, London EC2R 5AA.
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
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