MetLife has launched a new simplified income protection (IP) policy which it claims will help to solve the “protection puzzle”.
MortgageSafe provides a monthly benefit to homeowners, old and new, to cover mortgage repayments in the event that the policyholder is unable to work due to accident or illness.
The plan, currently available via a select panel of intermediaries, covers some or all of the monthly mortgage repayments – up to a maximum of £1,500 per month – for up to 12 or 24 months. A MetLife spokesperson said that policyholders can choose from the three levels of cover best suited to their lifestyle, health and the cost of the mortgage repayment.
There is no medical underwriting for policyholders looking for accident-only cover. For those wanting to protect against both accident and illness, MortgageSafe uses a simplified underwriting process formed of five “simple” health questions. Applications do not require GP reports, income or financial underwriting or family history.
The MetLife spokesperson said that self-employed workers who traditionally do not get sick pay, as well as first-time buyers, may be particularly attracted to the new policy.
Policyholders can also choose to add Optional Child Cover onto their policy for an additional £3 per month.
A wider launch is expected later this year.