A new long-term income protection (IP) product that provides cover for a one or two year period is now available from Pioneer.
The product is called 'Bills and Things' and will be a contender in the same market as payment protection insurance (PPI) and accident, sickness and unemployment insurance (ASU). Customers will be able to choose how much cover they would like and will receive the cover in £100 increments from £500 to £1,000 a month.
According to Pioneer, the firm will be aiming to get applications underwritten with seven to 10 days. Intermediary sales director Paul Wood said: "We have managed to break the £10 mark and think it will be popular with mortgage brokers . It will give them the opportunity to sell something their clients can afford."
Mr Wood believes the plan will tap into a new market where there are no other competing products and will sell in significant numbers. He added that there was a need for a new product given the restrictions around the selling of PPI products.




