Nationwide Building Society is the latest financial firm to offer an insurance alternative to payment protection insurance (PPI).
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Known as the Lifestyle Protector, the product offers short-term protection to consumers in the event of unemployment, accident, or sickness. The maximum redundancy cover is £2,000. Customers are directly paid the benefits, which includes a £30,000 life cover.
Underwritten by Pinnacle Insurance, Policy holders are covered their mortgage, rental and utility bills as well as gym membership fees.
Customers are given the option to choose a waiting period of 14, 30, 60, 90, or 180 days and can stretch the amount when necessary.
Freshly launched last week, the Lifestyle Protector is offered under two terms; a six and 12-month term, and allows a maximum monthly benefit of £2,500 (an equivalent to 60% gross monthly earnings).
For one to be eligible to apply, He or She must be a resident of the UK, aged between 18 to 65, and must have worked, for a continuous term of six months, during the beginning of the policy, for the same employer, for at least 16 hours a week.
Lifestyle Protector offers similar services to the (notoriously mis-sold) product, but with more flexibility, says the building society. Unlike PPI, the product “tailors the benefits of customers according to what they need,” and will only be offered in Nationwide branches instead of independent financial advisors.
It can also be availed on advise and non-advise basis which will be made through telephone.
