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Legal & General Income Protection

June 2019 Legal & General: IP

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L&G has updated its income protection (IP) plan. The changes include increased acceptance, more income guarantees and an extended support services, combined with more competitive pricing.

The changes include:

•             Scrapping the generic exclusion of alcohol and drug abuse.

•             Increasing the maximum IP benefit limit by 20% from £200,000 a year (£16,667 a month) to £240,000 a year (£20,000 a month). This applies to employed and self-employed customers taking out a plan on a standard or low-cost basis.

•             Raising the limit on increasing IP plans to £168,000 a year (£14,000 a month).

•             In 2018 L&G introduced special terms for NHS doctors, nurses and surgeons. Now it has introduced an income guarantee for these individuals, at £3,000 a month. The original £1,500 income guarantee remains for anyone who does not meet the criteria of being an NHS doctor, nurse or surgeon.

•             L&G says its Nurse Support Services (NSS) benefit is now available across its life insurance, family and personal income plan, income protection, relevant life plans and business life insurance intermediary product range. IP customers can get information on the NSS support services at any point during their policy. The service is available to the life insured and their immediate family, and offers support for a variety of areas such as mental health, bereavement and serious illness.

The plan’s existing benefits include  guaranteed premiums, a two-year low cost option, stepped benefit (on level and increasing plans), a choice of four deferred periods, income guarantee automatically included, and a range of rehabilitation support services included at no extra cost.

Comment: It’s good to see IP at last starting to show its true potential and evidence if that includes how many insurers are now tweaking their cover in order to further improve their plan’s competitiveness and to take advantage of growing sales. L&G is no exception and, while these are relatively minor changes for most, they add up to a stronger product.

Plus points: A range of improvements; Including dropping the generic alcohol and drugs exclusion; More competitive pricing.

Not so plus points: Minor changes that will affect relatively few clients; IP still has some way to go to fulfil its true potential; IP is seen as complex by many advisers and some technical changes may add to that.

Website: http://www.legaland general.com.

Rating (max 10): Overall: 8. Gold

Tags: IP’ L&G

I Mark: No

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