About mortgage payment protection insurance
- 90
families a day had their homes repossessed in 2000. The
majority due to the financial problems associated with unemployment.
- One
in three people aged between 25-34 have experienced unemployment
for a period in excess of one month.
- Almost
one in five working age households (3.4 million) have someone
who is currently unemployed.
- Today
in Britain there are almost 1,000,000 persons who are registered
as unemployed.
- Every
day 500 people in the UK become unemployed. 60% of unemployed
men and 45% of unemployed women will be out of work for
six months or more.
- Every
adult in Britain is five times more likely to suffer a serious
disability than die before the age of 60.
- Today
in Britain, 2,900 people will start claiming state disability
benefits.
- 1,800,000
people in Britain are already disabled and have been unable
to work for 12 months or more.
What cover is available under this mortgage protection plan?
This policy
will help you to protect your mortgage payments and insurance
premiums for up to 12 months if you become unemployed or suffer
a disability (accident or sickness).
If you
are taking out the policy to protect a new mortgage or re-mortgage
you will receive the first three months cover completely FREE
OF CHARGE.
If you
are taking out the policy to protect an existing mortgage,
then subject to the unemployment exclusion detailed below,
you will receive the first three months cover completely FREE
OF CHARGE.
Unemployment
Exclusion – if you are taking out the insurance policy to protect
an existing mortgage, you will not be covered against any
unemployment, which occurs during the free cover period. This
exclusion will not apply if you transfer your cover from another
insurer; provided your existing policy has been in force for
at least six months and you have not made a claim under that
policy.
The main
benefits and features of the insurance 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.
State benefits
You can
no longer rely on the Government. State benefits for a
single person are currently under £60 per week.
Could you manage on that? The typical state benefit for
two adults with two children is £96 per week; the
maximum is £134 per week. Could you support your family
on this?
Since October 1995 new mortgage borrowers will receive no
state help for the first nine months of unemployment or disability.
Existing mortgage borrowers receive nothing for the first
two months, only 50% for the next four months and then full
benefit for mortgages of up to £100,000 provided they
qualify for Income Support. The Government themselves estimate
that 70% of mortgage borrowers will not get Income Support
due to savings, income, or a working spouse or partner.
In 1998 alone, the introduction of a new incapacity criteria
resulted in 102,000 claimants being turned down for state
benefit. An independent doctor (not your own) will carry out
your assessment and you must be incapable of doing any work,
not just your normal job, to qualify for state benefit.
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