Payment insurance - more detail

It's not pleasant to think about. But if you became ill, had an accident or lost your job, you may be unable to pay your mortgage.

Mortgage Payment Insurance enables you to meet your monthly mortgage payments and other associated costs if you are unable to work due to an accident, sickness or unemployment. You can choose to restrict cover to  accident and sickness only, or unemployment only.

The State won't step in

You may think "accident or redundancy will never happen to me" but problems do arise. These days, not many people qualify for State help with their mortgage payments if they are made redundant. Income support is normally only available if you and your partner:

• Do not work, or work less than 16 hours a week
• Have savings of less than £8,000, either singly or jointly
• Agree to be means tested

Even if you qualify for help, benefits are severely restricted.

The reality

Anyone who took out a mortgage from 1 October 1995 onwards will receive no help with mortgage payments for the first 9 months after they lose their job. Those who took out a mortgage prior to this date will not receive any help with mortgage payments for the first 2 months and will only receive 50% of their payments for the next 4 months.

State payments

If you do qualify, the State payments will cover you for:

• Interest only. If you have a repayment (capital and interest) mortgage, income support will not cover your full monthly mortgage payment.
• The first £100,000 of a loan only.

State payments will not cover: home insurance premiums, life policies or payments to pension plans.

The facts are clear. If you become ill, have an accident or lose your job, your home may well be at risk. By taking out Mortgage Payment Insurance, you will have made provision to help keep your home safe.

Your complete cover

Our Mortgage Payment Insurance policy is underwritten by Aviva Insurance limited, trading as Norwich Union (a member of the Aviva group), one of the country's leading insurance companies.

The policy allows you to not only insure for a monthly benefit equal to your mortgage payment but also lets you cover additional day-to-day expenses. Cover is arranged on an individual basis to meet your specific needs. Whether the mortgage is in an individual or joint names, you can each select a level of benefit up to 150% of your monthly mortgage payment.*

Following a claim, monthly payments can be made for up to 12 months after an excess period of 30 or 60 days, depending on which you select.

* If you are arranging cover where there are more than 2 mortgage applicants each applicant can select a level of benefit up to 100% of the mortgage payment. The maximum cover for each applicant is £2000 per month. The minimum is £100.

Costs and terms

The cost of Mortgage Payment Insurance depends on the amount of benefit you wish to take out, the type of cover, and the excess period.

• Mortgage Payment Insurance is available to our borrowers aged over 18 and under 64. You can apply if you have been in continuous employment for at least 16 hours a week, or self-employed, for 6 months prior to application. You must be in good health and not have suffered from any disability or serious illness over the past year.
• You must not be aware of any impending redundancy or medical treatment.
• Ideally, you should apply for Mortgage Payment Insurance before you exchange contracts (or in Scotland before missives have been concluded).
• You don't have to have a medical examination nor will you have to fill out a detailed health questionnaire.
• For new borrowers, cover begins on completion of the mortgage. For existing borrowers, cover starts once you have applied and we confirm your cover is in place.
• Once you have applied, you will receive a certificate of insurance and a policy document explaining in full the cover, terms, conditions and exclusions that apply.
  

Additional help in the event of you having to claim.

'Back To Work' service

This innovative service is provided as standard when you make a claim on your Mortgage Payment Insurance policy. it aims to address the root cause of your situation to enable you to get back to work more quickly.

• Help if you lose your job
  The 'Back to work' Employment Service will help you find another job and includes:
  • Help from a specialist Careers Advisor
  • Back to Work Guide
  • CV advice and review
  • Interview preperation and review
  • Job Search Database access
  • Guide to Self-Employment
    
• Help if you suffer an accident or fall ill
  The 'Back To Work' Rehabilitation Service could help speed up your recovery, enabling you to return to work. Its tailored to individual needs, depending on the type of injury or illness, and may include:
  • Dedicated Personal Care Advisor
  • Developing an appropriate exercise regime/Personalised exercise pack
  • GP contact to ensure rehabilitation complements medical treatment
  • Treatment sessions such as Physiotherapy or Osteopathy
  • Access to a specialist website, clinical helpline and self-help booklet

 

Choose from the following:

• Key features
• Summary of Policy exclusions.
• For more information or a quotation, contact us on 0845 1200 803