Rental Protection Plans
A way to help pay your rent when you can’t?
Renting is on the rise and in the last 10 years the UK private rental market has doubled. Your rented property is more than just the place you live, it’s your home!
The rental demographic has changed; it’s no longer just young couples who find themselves renting for the long term. Have you ever thought about how you would cover the cost of your rent if you were to become ill or injured and be unable to work?
Why it’s important to be protected
- If you have a 12-month lease (or longer) you are committed to pay the rent for the entire period.
- Your employer only has to pay Statutory Sick Pay for up to 28 weeks (sick pay varies and so you should be aware of your personal circumstances).
- Going into arrears could affect your chances of obtaining a new tenancy agreement or mortgage.
- Renters typically spend 40% of their income on housing costs.
- UK rents are predicted to climb by as much as 15% over the next five years.
A Rental Protection Plan could provide a way to protect yourself, and the ones you love should the unexpected happen during the length of the plan. It is designed to provide a monthly benefit which could be used to help pay the rent and/or living costs.
Legal & General have launched three separate products specifically aimed at renters:
- Rental Income Protection Benefit – designed to provide a regular monthly benefit which could be used to help cover rent payments if you cannot work. For example due to incapacity caused by illness or injury, resulting in a loss of earnings during the length of the plan.
- Rental Life Insurance – designed to provide a regular monthly benefit in the event of your death during the length of the plan. This could be used by your surviving family to help cover rent payments.
- Rental Life Insurance with Critical Illness Cover – designed to provide a regular monthly benefit in the event of your death or diagnosis of a specified critical illness during the length of the plan. This could be used by your surviving family to help cover rent payments.
Benefits of taking out Rental Protection
- Rental life insurance helps to ensure your family is able to continue living in the home in the event of your death.
- It gives you the ability to increase cover if rent costs increase (eligibility criteria applies).
- It provides a monthly benefit which could help cover rent if eligible to claim during the length of the plan.
- Additional benefits are included as standard with optional extras available upon request (conditions apply).
- Low-Cost option available for Rental Income Protection Benefit (restrictions apply).
- Ability to switch to an Income Protection Benefit plan if you no longer rent as a result of taking out a mortgage (conditions apply).
If you would like further advice please get in touch with a member of our team.
Disclaimer; all information has been provided and taken from the Legal & General adviser protection website. Sources include; Royal Institution of Chartered Surveyors, The English Housing Survey and Rightmove 2019. Terms & Conditions apply.