Bristol & West (B&W) is unveiling a new protection range at the end of June which comprises both advice-based and execution-only mortgage protection policies.
Launched in conjunction with Eagle Star, the mix-and-match range includes competitively priced decreasing and level term deals, protecting the policyholder or mortgage repayments in the event of death, terminal illness and/or critical illness.
The range is split into products available through one of B&W’s personal finance managers and those available on an information-only basis within the mortgage interview itself.
From the personal finance managers, customers will have a choice between the Guaranteed Protection plan, where premiums are set for the life of the policy, or the Flexible Protection plan, where rates are guaranteed for the first five years of the policy and reviewed annually thereafter. The latter plan allows the cover and the term of the plan to be increased.
The execution-only product range, MORTGAGE PROTECT, offers the choice between life, critical illness and terminal illness cover on a level or decreasing term basis, depending on whether the mortgage is interest-only or repayment.
Paul Wells, senior product manager, investments, at B&W, said the range had been developed following a review of the lender’s existing protection product offering.
He said: “We found that after comparing our existing product range with comparable products in the marketplace we found that some elements were extremely competitive while others were not. Customers also did not have the ability to choose the appropriate service options to match their needs – in other words, do I need help or do I know what I want?”
As a result, the company has cut the cost of its critical illness cover by up to 30%.
Wells said: “This is an area we strongly felt we had an obligation to encourage as many customers as possible to look at, because we know that during the mortgage term, for example, the risk of suffering a critical illness is far more likely than dying.”
He added that by dividing the range into advice and information-only products, B&W was taking a realistic look at customer demand.
“It makes sense to align our mortgage protection with what our customers want.”