A new range of age-related payment protection insurance products from Securityfirst.co.uk has slashed premium costs to unprecedented levels and given policyholders greater security.
The majority of mortgage, loan or income protection policies charge the same flat-rate irrespective of age, resulting in those least likely to claim having to subsidise those who do.
With securityfirst.co.uk premiums are set according to the customer’s age at the outset and do not automatically increase over time.
The youngest policyholder at 18 will for example, pay £1.60 per £100 of monthly mortgage payment protection insurance, £1.75 for loan and £1.85 for income cover. Those unable to work due to an accident, sickness or involuntary unemployment will receive a pay out for a maximum of 12 months.
Simon Burgess, managing director of British Insurance who owns securityfirst.co.uk, says ' Younger people are less likely to go ill and more likely to find a job quickly if they are laid off, so it seems unfair that they should pay over the odds for cover when they are often still earning relatively modest incomes. Anyone under 50 will in fact be better off with this product than they would be with the best flat-rated cover. '
Payment Protection Insurance : News update: October 2006