UK general insurance network, CETA, has launched a new ASU policy to address the problems traditionally associated with ASU products.

Despite the government's target of 55% of borrowers purchasing an income protection policy by 2004, only a third of borrowers currently have one.

CETA hopes its Safeguard policy will prove more popular than current offerings. Underwritten by NIG, CETA claims the product is cheaper, and says it has no exclusion period.

CETA managing director David Quick said: "There are serious problems with many of the ASU products currently on offer. The time has come for a new breed of ASU products to be developed and marketed.

"The reality is that ASU products are more relevant today than ever before. Many people think that if they lose their job the state will immediately support them.

"This is not the case and advisers should be encouraging any responsible householder to take steps to ensure they will continue to have an income if the worst come to the worst and they are made redundant, or are unable to work due to an accident or illness."

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