Referred to
under differing names such as Mortgage Protection, Income Protection, Mortgage Payments
Protection Insurance (MPPI) etc. - ASU policies provide short-term income replacement in
the event of disability through accident or sickness with the added facility to cover the
eventuality of unemployment. ASU policies can either be bought as a package to cover both
disability and unemployment or separately
Only 30% of claimants are eligible for Income Support when they are unable to keep up
their mortgage repayments due to disability or unemployment
In 1998 alone, the introduction of new incapacity criteria resulted in 102,000 claimants
being turned down for State Benefit. An independent doctor will carry out your assessment
and you must be capable of doing ANY WORK, not just your normal job to qualify for Benefit
No Income Support payments are made if your partner works more than 16 hours a week
DSS will not cover mortgage capital repayments or insurance costs
No help is given for mortgage interest on the portion of a loan above £100,000
No payment is made if the mortgage is for let property
For mortgages taken out before 2 October 1995, you may be entitled to 50% of interest
paid after 8 weeks, rising to 100% of interest after 26 weeks
For mortgages taken after 2 October 1995, you may be entitled to
100% of interest paid only after 40 weeks
Financial hardship caused by disability or unemployment can take
years to recover from, restrict future credit lines and cause the cancellation of life
policies at a time when they are needed most
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Who is eligible for cover…?
Aged between 18 & 64 years
Permanently resident in UK
In permanent employment or on contract and working at least 16 hours per week
In continuous employment for at least 6 months
There are some exclusions:
self inflicted injuries, attempted suicide or treatment that is not medically necessary
e.g. cosmetic surgery
disability due to stress, nervous disorder or backache unless a consultant certifies the
condition prevents you from working – some contracts are more stringent than others
and is mostly reflected in the premiums charged
disability due to drugs, alcohol abuse or AIDS
Any condition or disease which is known at the commencement date or for which treatment
has been received or advice given in the preceding 12 months
Dismissal due to misconduct or breach of contract
Seasonal unemployment or expiry of non-renewable or fixed term contracts
By providing income if you or your partner
are unable to work due to accident or sickness (known as a Disability) or Unemployment.
Cover can be for both Mortgage Repayments and loss of income.
Benefit paying periods can be up to 24 months.
Maximum benefit is normally restricted to 75% of gross monthly income or the maximum
imposed by the individual policy providers (normal maximum £2,500)
Premiums will obviously depend on the amount
of benefit cover required, the type of benefit and the period. We have put together a spreadsheet showing the
range of cover available and the cost involved.
Some insurers
have both a paper-based system of processing new business as well as Internet based
systems. In some cases a slight discount can be obtained by transacting such business on
line where it is available. In any event we are available to provide any assistance you
may require.
Please bear in mind that each individual underwriter (insurer) will assess the
potential risk according to it’s own experience and judgement and that the terms
quoted are subject to their acceptance
How to apply …?
–
you may either use:
Paper based method -
complete the following Accident, Sickness & Unemployment
Request Form, press the submit button
and a Brochure including a Key Features Document and Application will be sent to you. Once
your application for cover has been accepted you will receive a personalised Certificate
of Insurance and a copy of the Policy Terms & Conditions.
Internet online application:
some underwriters provide an internet only
policy. These are indicated in the spreadsheet of providers. Click here
to go to the spreadsheet and click on the relevant provider where indicated
