mortgage payment
protection insurance
key features
Key features
Who needs unemployment and/or disability mortgage payment
protection insurance?
Simply consider the following information:
- 32% of mortgage arrears in the UK are caused by sickness
or unemployment.
Source: White Horse Mortgage Services
- One in 11 of working population are currently claiming sickness
benefit.
Source: DSS
- Nine out of ten of those claiming sickness benefits do not
return to work for at least 6 months. Source: DSS
- Over 2,850 people a day start claiming DSS sickness benefits
as a result of illness or injury. Source: DSS
- On average, each year, a typical person has a 1 in 100 chance
of being made redundant. Source: Social Trends
- Latest figures indicate that 650 people a day are made redundant
in the UK.
Source: Social Trends
- Only 20% of all mortgage holders have some form of ASU cover
at present.
Source: ABT
The main benefits and features of the policy
- It provides full unemployment and disability cover. Unemployment
only cover or disability only cover is available at a reduced
cost.
- Free cover benefits for both new and existing mortgage borrowers.
- Competitive premium rates after the free cover period.
- Back-to-Day-One benefits payable after 30 days.
- Claim benefits are paid for up to 12 months.
- It covers employed and self-employed applicants.
- Simple application procedure (no medical required).
- Cover can be transferred from one lender to another.
How the policy works
- You choose the amount of monthly cover you need.
- You choose the type and level of cover you need.
- You pay your premium as it falls due.
- We pay a fixed monthly benefit for up to 12 months if you
are unemployed or disabled for longer than the waiting period.
Important note – the maximum amount
of monthly cover you can take out under the policy (including
the 25% additional benefit) is either £1,500, or a sum
equal to 65% of your normal income, whichever is the lower (the
definition of normal income is contained within the policy terms
and conditions).
When you can make a claim
You will normally be able to make a claim under the policy
if:
- you have lost your job due to circumstances beyond your
control and you are registered as being unemployed; or
- you are unable to work due to a disability and you are under
the regular care and attention of a doctor or consultant.
There are certain circumstances when you will not be able to
make a claim. Details of all the exclusions are provided in
the policy terms and conditions.
The cost of cover
The cost of cover will depend on:
- the amount of monthly cover you need;
- the type of cover you select;
Premiums for cover under this policy are collected monthly
in advance by direct debit.
MONTHLY PREMIUM RATES
The costs of cover are expressed as a rate per £100 of
monthly benefit and include Insurance Premium Tax.
Working out your monthly premium under the policy
To work out your monthly premium
Eligibility for cover
You are eligible for cover under this policy if:
- you are at least 18 and under 65 and you live and work in
the United Kingdom, Channel Islands or the Isle of Man;
- you are taking out this policy to protect the mortgage on
the private residential property you live in; and
- you agree to keep to the policy terms and conditions.
You are not eligible for cover under this policy if:
- you know, or you are aware, of any circumstances that may
result in you becoming unemployed;
- your work is of a casual, temporary or seasonal nature;
- you work for a temporary employment agency;
- you are in any type of occupation where unemployment is
a regular feature of that particular job; or
- you are currently unable to work due to a disability (this
clause does not apply if you are on maternity leave).
Arranging cover under the policy
This policy is arranged by British Insurance Brokers.
Their customer services can be contacted in the following ways:
Our address is:
British Insurance Brokers
PO Box 7345
Dunmow
CM6 3WE
Tel: 0870 243 0539
Email: info@mortgage-payment-protection.net
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