Mortgage Protection Inusrance UK Summary of Cover

Who needs unemployment / disability mortgage payment protection insurance

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
  
  
• 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
  

Why choose this policy ?

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 policy to protect an existing mortgage, you will not be covered against any unemployment, which occurs during the free cover period of you mortgage protection policy. 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 our uk mortgage protection 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 uk mortgage protection insurance

The cost of cover after the FREE COVER period will depend on:

• the amount of monthly cover you need;
  
• the type of cover you select;
  

Premiums for your uk mortgage protection cover under this policy are collected monthly in advance by direct debit. Your first premium will become due in the month immediately following the FREE COVER period.

MONTHLY PREMIUM RATES

The costs of cover are expressed as a rate per £100 of monthly benefit and include Insurance Premium Tax.