Our flexible Payment Protection plan
This policy is designed to protect the customer's mortgage payments, rental payments and/or loan payments if they become unemployed and/or suffer an accident or sickness. It can also be used as stand alone mortgage payment protection, stand alone rental payment protection or stand alone loan protection as required.
There are three types of cover:
- unemployment only
- disability (accident and sickness) only
- unemployment and disability
The cost of cover will depend on the amount of cover the customer needs, the type of cover they select and the qualification periods with a fixed benefit period of 12 months.
The policy is flexible so where a customer insures both unemployment and disability they can select a different qualification period for each element of cover.
The maximum amount of cover is limited to the total of the customer's mortgage commitments (including life cover and household insurance), rental payments and/or loan payments plus 25% extra cover (subject to a maximum benefit of £1,500 per month).
There is no initial exclusion period for customers who are taking out protection for a new mortgage, re-mortgage, new loan or new rental agreement. For guidance on dealing with customers transferring policies from another provider, click here.
Existing borrowers (where the agreement has been in force for more than 30 days when the policy starts) may apply for cover but there is an initial exclusion period for unemployment of 90 days when the amount insured is £500 or less, an initial exclusion period of 120 days where the amount insured is between £500.01 and £1,000 and 180 days where the amount insured is £1,000.01 or more.
For existing borrowers, there is a flat initial exclusion period for disability of 90 days, regardless of the amount insured.
This page is only intended for use by 3XD registered intermediaries.
|
