Legal & General has launched a two year limited benefit income protection policy product to meet the growth of the low cost market.
The new product will permit multiple claims, with each individual claim allowable for a maximum duration of two years.
The update also includes an enhancement to the replacement ratio used to calculate the maximum benefit based on annual earnings.
New limits will be set at 60% of the first £60,000 of gross annual income and 50% of income in excess of that figure.
This is designed to provide customers with a monthly benefit that equates to a greater percentage of their salary than previously permitted.
This new product will be available to Legal & General customers via intermediaries from June 2016.
Additionally, a price beater service has been introduced across the Income Protection range.
Steve Bryan, director, Intermediary, Legal & General, said: "Protecting yourself financially against an unfortunate occurrence such as this can make all the difference in helping you safeguard you or your 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.
At Legal & General 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."
