The plan offers life insurance, critical illness and income protection products specifically designed for the underserved rental market, through one application.
It gives tenants the opportunity to increase the amount of cover in certain circumstances—if their rent increases, they relocate, or otherwise change tenancy agreement—without needing to go through medical underwriting again.
The insurer said it was the first to pilot a bespoke rental product to address this gap in the market. A full market launch is expected later this year through its intermediary partners.
Rent as important as mortgage
Legal & General Intermediary director Craig Brown (pictured) said: “Nearly a quarter of UK households will be renting by 2023 and the protection needs of these families will need to be met by products and solutions specifically designed for them.
“First-time buyers usually receive a protection nudge when they seek mortgage advice, but most renters do not benefit from the same prompt.
“This leaves tenants facing a greater risk of vulnerability due to unforeseen circumstances.”
Brown added that rental payments are every bit as important as mortgage payments in a household’s finances.
“We believe that tenants are an underserved group in the protection market and we want to help the intermediary market to be able to better address the needs of tenants through relevant and tailored propositions,” he said.
Resonate with renters
Mortgage Advice Bureau CEO Peter Brodnicki added: “The tenant market is completely untapped with the current focus totally on protecting the landlord.
“Tenants have the same outgoings as homeowners. It should be our priority to keep both groups in their home.”
“Legal & General worked really closely with us to deliver a product we felt would really resonate with tenants and we have found that it’s done exactly that,” he added.