The incapacity element pays out for 24 months if the customer is unable to work following diagnosis of 29 conditions such as cancer, heart attack or stroke, while an after death lump sum payment is also embedded in the product.
Speaking at the group’s product launch at Arsenal Football Club’s Emirates Stadium yesterday, VitalityLife chief executive Herschel Mayers told the audience that while 64% of families have no life insurance 94% neglect incapacity protection, despite the latter being four times more likely.
Mayers said: “We recognise that mortgage advisers need a straight forward, complication free product which is tailored specifically to mortgage borrowers’ needs.
“Mortgage Plus Plan is a brand new concept which makes protecting the largest liability of customers easier than ever before and I am confident that it will encourage a greater number of mortgages to take out protection, thereby growing the market in that sector.”
Customers can make multiple claims with the product, while the policy is not underwritten on occupation or financial circumstances.
They can also add serious illness cover for themselves and/or their children to the plan.
A recent YouGov poll showed that over a quarter (26%) of mortgage holders have insufficient savings to cover just three mortgage payments.
Mark Graves, sales director at Pink Home Loans, added: “For many new borrowers, protection is seen as a costly and complex decision which comes at a period of great stress and unheaval in their lives.
“Simple solutions which aim to provide efficient, affordable cover are the key to growing this market and Mortgage Plus Plan is ideal for this purpose.”
VitalityLife launched two other products yesterday, as it unveiled a short-term Income Protection option which will pay up to 24 months on each claim.
It also launched ‘LifestyleCare Cover’, a flexible product which pays out in death but also lets the user take out a preselected proportion of the product early.
They can also access 20% of money in the case of an early diagnosis of Alzheimer’s, Parkinson’s or Dementia.
