British Insurance has launched a new low cost and flexible mortgage payment protection insurance policy in collaboration with Norwich Union.
Sold by British Insurance, the British Mortgage Insurance policy will be underwritten by Norwich Union and administered by Paymentshield.
Disability cover and unemployment cover are both available independently for only £1.95 per £100 of cover, while insurance for both eventualities is only £2.95 per £100 of cover.
British Mortgage Insurance provides excellent value to consumers and offers savings of tens of thousands of pounds in comparison to other mortgage payment protection insurance policies being sold in the market.
Over the life of a 25 year mortgage, a 30 year old couple with a loan of £1000,000 and monthly payments of £700 will be £8484 better off if they opt for British Mortgage insurance rather than the insurance offered by Nationwide (See editors; notes).
This insurance is level rated and underwriting does not take account of age, occupation or gender. This non-discriminatory approach means older applicants or those with unusual jobs will be catered for an very competitive premiums.
Simon Burgess, managing director at British Insurance said; "British Mortgage Insurance offers flexibility and simplicity for those who need to protect their monthly mortgage payments and is great value in comparison to other products on the market."
The policy offers cover for monthly payments, including related life and home insurance premiums. A further 25% of optional cover is also available so long as the total benefit is no more than the lesser of £1500 or 75% of an applicantâs income. In the event of a claim, the insurance will pay out for a maximum of 12 months.
Mr Burgess added: "MPPI is sold by high street providers as a money making venture, rather than a value added protection policy. By taking a little bit of time to seek out MPPI that is independent of the mortgage they are signing up to, borrowers can save themselves tens of thousands of pounds and at last afford to cover what they need in today's environment."
British Mortgage Insurance can be arranged over the internet at www.britishinsurance.com/mortgage-insurance
Income protection: News update: August 2007