LV= hails income protection insurance

Thursday, 20 August 2009 12:00

LV= is urging homeowners to take out insurance to cover their mortgage hailing it as an essential purchase to secure their home in tough times.

The insurer has unveiled statistics showing that two thirds of adults would be "devastated" never to own their home and 51 per cent would take a second job to hold on to it.

Yet, only one in ten have mortgage payment protection insurance (MPPI) to cover the mortgage and bills if they lost their income.

Chris McFarlane said: "We need a sea of change in the way we view threats to our homes. We install locks and alarms because we fear burglary and we have buildings insurance to protect the property structure.

"But typically we don't protect the regular income that we need to be able to maintain over the long term to pay for our homes and other living costs."
< FONT face=Calibri size=3>
According to LV= proper income protection can cost as little as 50p a day.

It said a 29-year-old non-smoking male office worker could buy cover worth £1,000 a month - which would be payable after three months - starting at £15.20 a month.

This would, said LV=, provide replacement income potentially amounting to over £350,000 over time.

• Tags:
• products and companies