The new policy, named Universal Cover, will provide customers with a tax-free monthly benefit if they become unemployed, suffer a disability that prevents them from working, or if they need to give up work to become a carer.
The product can be used to cover mortgage payments, rental payments, council tax and utility bills, among other things. Capacity is provided by Cigna Insurance.
Simon Burgess, director at British Money, sold his payment protection insurance (PPI) specialist firm, British Insurance, to Towergate in 2008.
Burgess said Cigna had granted British Money a five year exclusive contract.
“Cigna haven’t done this before but they think there’s a good opportunity for them,” he said.
“The time is good in the UK mortgage market, things are on the up.”
However, he continued to admit that the scandal around PPI might be a hindrance to the product initially.
“Absolutely people will be nervous and with some justification,” he claimed.
“What was a good product (PPI) was taken and completely subverted and turned into something evil, designed to rip people off.
“The whole industry was dysfunctional and operating to the detriment of consumers.”
Burgess stated: “What [British Money] needs to do with this is ensure that it’s a product that pays claims.
“We have something there that meets the honest expectations of customer.”
He added: “We have a proven track record that we are consumer champions and we can make profits without profiteering.”