Shepherd's Friendly has launched a mortgage payment protection insurance product that differs from other policies in providing up to five years of cover compared with the usual 12 months.
The company wants to offer a product that could cover the full term of a fixed or discounted period up to a maximum of five years. At the end of this period, the policy will be reviewed and amended to reflect the new mortgage deal and payments.
This product aims to pay the chosen benefit that the customer will use to meet their monthly mortgage repayments if they are unable to work due to sickness or an accident. It does not cover unemployment.
Customers can choose either 100% or 130% of the monthly mortgage payment, with the maximum monthly benefit set at £2,000. This cannot exceed 60% of normal monthly income and will be paid after 30 days of consecutive disability either from accident or sickness. As a back to day one policy, it will pay one month’s benefit on the 31st day.
Tele-underwriting by a qualified nurse from Morgan-Ash at the time of sale will also ensure claims are dealt with quickly and efficiently, as all the required information will have been gathered already.
Income protection insurance: News update: April 2008