Specialist payment protection provider Paymentshield is launching a mortgage payment protection insurance product in late summer, which is designed to incorporate the benefits of income protection.
The product aims to tackle the common problems of mortgage payment protection insurance, including that it only provides cover for one year, is the same price for all age groups, and accident, sickness and unemployment benefits are bundled together.
Paymentshield’s new product will provide accident, sickness and unemployment benefits cover for longer than one year and the premiums will reflect the fact older people have a greater risk of becoming ill.
Also, it will allow people to delete accident and sickness cover and opt for unemployment cover only.
Chris Traynor, sales and marketing director at Paymentshield, says: “The product will be completely different to anything in the market now. The market has been static for 12 years and we want to reflect a modern society where accident and sickness cover are often dealt with through work.”
The product will be more complex than existing covers as when someone wants cover for more than one year they will have to answer more underwriting questions.
Customers will still be able to buy Paymentshield’s traditional MPPI product when the new version is launched in late summer.