Legal & General has launched key person income protection to complement its key person protection offering.

The product has been launched in response to adviser feedback and provides a monthly benefit to a business in the event of a valid claim to help meet the costs of repaying a business loan, replacing lost profits or hiring a temporary replacement employee in the event of a key employee being unable to work due to illness or injury:

Robert Betts, market development manager at Legal & General, said: “We’ve listened to advisers and, as a result, launched Key Person Income Protection to enhance the Business Protection solutions we can offer them.

“Given the events of the last year, it’s likely many business owners will be more aware of the financial impact of illness and so this product has arguably never been more important. Understanding the Business Protection needs of firms, especially SMEs, is key to unlocking opportunities for advisers and so we’ll be supporting this product launch with adviser training and webinar, helping to equip them for their client conversations.”

Alan Richardson, head of business protection and group at Lifesearch, added: “Having a solution that allows our customers to protect their key people and their business lending repayments is crucial. L&G’s new Key Person IP policy will now form the missing part of the Business Protection jigsaw.

“This will enable advisers to provide a solution for loss of employees and directors, regardless of whether the ‘Anderson Principles’ are met, helping open up a better conversation and better results for the customer. Having a policy that can be taken alongside business lending at affordable costs, especially in view of the loans that have been taken to support firms through the pandemic, will also help business trade and grow with confidence.”