The product will be available exclusively via the enable Mortgage and Insurance Network. It offers extended sickness cover, with guaranteed premiums, for the full term of the mortgage, subject to a maximum age of 65 years. The launch is expected in May or June this year.
Michael Ward, chief executive of Enable, said: “We have worked together with Prudential to create a product which we believe will fill a gap in the market. The benefits provided by ASU and the terms and conditions of the market’s existing leading products will simply not meet the needs of customers or the adviser post-regulation.”
Mark Wood, chief executive of Prudential UK, said: “We share a belief with the management of Enable that the time is right for a fresh approach to mortgage payment protection. Prudential is confident this new mortgage protection plan will make significant in-roads into the market, benefiting advisers and their customers by providing real long-term sickness cover”.
Commenting on the product, Peter Timberlake, press spokesman at Legal & General, said: “We introduced a similar product some time ago, though we will have to see the finished product before we can do a proper comparison.”
