LV= has launched income protection (IP) for people living in rented accommodation.
Income Protection for Renters pays a monthly benefit to renters if they are unable to work because of illness or accident.
The plan, which builds on LV=’s existing income protection plan, offers a guaranteed increase option, enabling customers to increase their amount of cover if a landlord increases their rent or they move to a new property.
It also includes parent and child cover, which pays out a lump sum payment of six times’ monthly cover (up to £25,000) if a policyholder’s child is diagnosed with a specified condition, and a death benefit of up to £10,000.
An unemployment payment holiday feature means policyholders won’t have to pay their premium for up to six months if they become involuntarily unemployed.
There is also a member care line providing legal advice about tenancy and landlord disputes.
Lower-cost options with shorter payment periods of either 12 or 24 months are available.
Debbie Kennedy, director of protection at LV=, said many renters worry about what would happen if injury or illness meant they couldn’t work and pay their rent.
“Dealing with a landlord is not the same as dealing with your bank or building society and in some cases you can find yourself in a default situation far quicker than expected when renting,” she warned. “It is important that our protection plans meet customer needs and our rental proposition provides this flexibility of cover.”