Legal & General has rolled out its Rental Protection Plan (RPP) for tenants following a pilot with Mortgage Advice Bureau.
The product is now exclusively available to all Legal & General intermediary partners.
RPP is designed to pay out a monthly benefit, which could be used to help pay the rent, bills or other financial commitments, in the event of a valid claim.
Nearly a quarter of UK households are expected to be in private rental accommodation by 2023, according to Knight Frank.
The plan offers three choices through a single application: rental income protection benefit, rental life insurance and rental life insurance with critical illness cover.
Additional benefits include Legal & General’s rehabilitation support, which is available on the income protection benefit, and nurse support services, which are available on all three offerings.
In some circumstances tenants can increase the amount of cover if their rent increases, without answering any new medical questions.
A newly-launched feature gives policyholders who no longer rent as a result of taking out a mortgage the option to change their policy to an income protection benefit plan.
Craig Brown, director of Legal & General Intermediary, said unlike those who have taken their first step on the housing ladder, tenants won’t have the natural trigger of a mortgage application to consider protection.
“At Legal & General, we know that rental payments are every bit as important as mortgage payments in a household’s finances,” he added. Ben Thompson, deputy chief executive of Mortgage Advice Bureau, added: “Being able to promote protection to tenants with Legal & General this year has helped us make meaningful inroads into our plans in this regard, specifically engaging with tenants who are aspiring to buy their first homes.”