Legal and General has updated its income protection benefit offering with the launch of a two-year limited benefit plan.
Available via intermediaries from June 2016, the plan is set to replace the insurer’s current five-year version.
The updated plan will permit multiple claims, with each individual claim allowable for a maximum duration of two years.
Adjustments have also been made to the replacement ratio used to calculate the maximum benefit based on annual earnings. Limits will now be set at 60% of the first £60,000 of gross annual income and 50% of income in excess of that figure.
Steve Bryan, director, intermediary, at Legal and General, said: “Income protection can play a vital role in the event of ill health or injury by supporting an individual or family through a testing time. Protecting [employees] financially against an unfortunate occurrence such as this can make all the difference in helping [them] safeguard [themselves] or [their] family’s current lifestyle against the financial implications of being unable to work.
“However, if we want to see more people benefit from these products, we 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.”