LV= intends to upgrade the mortgage payment protection insurance sector with a new product offering accident, sickness, unemployment and mortgage payment cover. 

The new mortgage and lifestyle protection policy will pay out guaranteed premiums until the claimant returns to work or until the plan ends with disability definitions based on the policy holder’s occupation. 

LV= says the longer term of its new policy is a key distinction from other mortgage payment protection plans which are often limited to one or two years. 

The insurance company formerly known as Liverpool Victoria says the plan will offer a choice of level or index-linked living expenses protection.  

‘We saw that the market needed a more flexible product that could be tailored to their client’s individual needs and that was easy to understand,’ said Chris McFarlane (pictured), head of protection at LV=. 

McFarlane said LV=’s new plan will stimulate the protection market, and will be a helping hand for advisers hit by the downturn in the mortgage market. 

Tele-underwriting with medically trained staff will be used in the application process, said McFarlane. 

‘An additional bonus of this product is its flexibility, the client can alter their cover when their life circumstances change, for example if they move house, have children or get married,’ said McFarlane

Bright Grey will double the maximum amount of critical illness cover it offers to £1 million as part of a drive to beef up its personal protection business. 

The arm of Royal London Group is investing in its back office to speed up applications with a new team of experienced underwriters dedicated to large cases starting on 28 July. 

Bright Grey will raise the maximum amount of life cover consumers can claim to £5 million from £2 million. Consumers will be given an extra 30 days to return completed application forms as Bright Grey relaxes its deadline to 60 days. 

‘This year our focus has been on improvements to the customer experience of our application and underwriting proposition,’ said Roger Edwards (pictured), Bright Grey’s product director. ‘These enhancements reflect and build upon market trends, such as the requirement for higher levels of cover from individuals as well as businesses.’ 

Bright Grey has also tweaked its online application system to give advisers and clients more time to check details in an effort to cut non-disclosure.

Aegon Scottish Equitable has added five more illnesses to its critical illness cover.  In addition, it has extended it maximum term on guarantedd rates from 25 to 40 years.  This now takes the total number of conditions covered to 36.  The additional five critical illnesses are  rheumatoid arthritis , open heart surgery, primary pulmonary hypertension, systemic lupus erthematosous and encephalitis.

The life insure has aslo improved three critical illness definitions to the Association of British Insurers’ plus standard.  They are coma, heart attack and third degree burns. 

 Extending the maximum term on guaranteed rates by 15 years, Aegn confirmed to us that this was in response to people taking out longer term mortgages than the previous normal term of 25 years