The product is called IncomeShield and can be sold as a standalone product or in conjunction with other insurance and protection products to provide a holistic client service.
Paymentshield chief executive, Tim Johnson, said: “Financial intermediaries have been crying out for a flexible income insurance product that is not tied to a mortgage or loan but that can be used to cover a raft of financial outgoings including rent, council tax, school fees and even gym membership or the daily running of a car.
“IncomeShield fulfils this requirement and comes without the negative associations of payment protection insurance. It also comes to market at exactly the right time as customers are searching for ways to protect their income as we continue in a period of extreme economic uncertainty.”
IncomeShield provides cover for policyholders for up to 24 months (AS cover) or 12 months (ASU or U cover). The product is age-banded and cover can be tailored to meet individual requirements.
Premium rates for a customer aged 31 to 35 years taking cover with a 30 day Back To Day One qualification period are ASU £5.38 per £100 benefit insured, AS £2.24 per £100 benefit insured or U £4.84 per £100 benefit insured.
Clients can opt for full ASU, AS only or U only cover to suit their personal needs. Additional features provided are health, employment and legal protector cover and back to work support with ASU or U only cover.
IncomeShield covers outgoings of up to £2,000 per month subject to a maximum of 65% of income. Brokers can earn up to 25% commission on each sale.
Johnson added: “IncomeShield puts the customer in charge of where they want to spend their money. What's considered to be an essential outgoing will vary; some people will prioritise their mortgage payment whereas others can’t live without Sky TV or their mobile phone. Ideally enough monthly benefit would be selected to cover essential outgoings and if your customer has budget to protect “luxury” spends then this can be covered too.
“We believe this flexibility, together with increased demand for income insurance in the face of higher unemployment and a government clampdown on benefits and reduced support for borrowers that are out of work will see IncomeShield become a popular tool for intermediaries seeking to protect their clients’ quality of life.”
