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Mortgage Payment Protection Insurance

We understand that many people prefer having somebody to talk to about the features they want from a policy.

We also understand that they may be concerned that they will be pressurised to buy a policy. We promise to give you the information you need without any obligation to buy.

We have built up an excellent reputation with our customers in providing income protection policies via the internet. Over 80% of our customers score us 10 out of 10 on living up to our claim of offering a "good old fashioned service via the internet".

Please note : Our featured policy is not a specific Mortgage Payment Protection policy, rather you can spend the benefit on what you want. The policy conditions and premium make it an attractive policy to protect your mortgage and other payments.

Call us now and experience that service for yourself.

As an independent company we continually review the policies we offer via our website. It is important to us that the policies do what they say they do, and that the insurer is focused on offering excellent customer service. We have stopped selling policies of companies who fall below this standard.

The full policy wording will be available to you before you complete your purchase. We will also send you a copy.

To understand the common features of our policy please see below.

If within 30 days of buying your policy you decide it isn't appropriate to your needs or you simply change your mind, then any premium taken (if any) will be refunded.
Our range of policies include the following benefits and Features

Maximum Cover £3,000

Spend the benefit how you want
Your cover stays in force even if you pay off your mortgage

Can Protect Up to 65% of your Gross Income

Unemployment Only Cover Available

Back to Day One cover

60 Day Exclusion Period
Waived if switching cover

Cheaper premiums available for 30 & 60 excess periods

Read the Full Policy Wording

The KeyFeatures Document explains the core conditions of our policy in simple language. Download your copy below

POLICY KEY-FEATURES

Make sure you are eligible to claim on our policy

Our eligibility and disclosures document explains in clear language who can buy a policy and your other rights under the policy

ELIGIBILITY & DECLARATIONS

 
 
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Platinum Financial Consulting is a fully independent financial services company, authorised and regulated by the Financial Conduct Authority (number 227014) to sell general insurance products.

We offer products from a range of insurers. Unlike many of our competitors we are not compelled to sell the policies of any one company; nor do we try to include every policy in the hope that you will select one. We select what we consider to be a good all round policy, using both quality and price criteria, and feel that the terms and conditions of our policies are among the best in the industry. Some of our policies are not available directly to the general public, and we have refused to sell policies that we feel do not offer customers adequate protection.

Please note: Our recommended policies are not based upon individual appropriateness, but rather we feel that their features versus their cost currently make them the best value for money policy in each category from all those available to us. Your policy is purchased as a non-advised transaction. We strongly advise you to read the full policy wording, which you can download from this site. The policy wording is the document you will rely upon in the event of a claim.

 


Accident and Sickness & Unemployment Insurance - The Simple Stuff


This section aims to give you a good understanding of how most Mortgage Payment Protection, Income Protection and Accident Sickness and Unemployment policies work.

While all policies will have their own terms and conditions, there are some generic conditions that most accident, sickness and unemployment policies adhere to. This section aims to give you a simple overview, however there is more detail in the "Comprehensive Information" section below. Please ensure you read the appropriate policy document for your specific policy which will presented to you via our quote system above.

An accident, sickness and unemployment policy will have the following features :


Feature Example
   
The Insured Person You
An Insurable Event Redundancy
Sum Assured £500 per month
Monthly Premium £25
Qualifying Period 30 days
Payment Term 12 Months
Voluntary Excess Period Back to day one
Exclusion Period 60 Days



In this example, as long as you continue to pay the monthly premium (£25), you will become eligible to claim after the exclusion period (60 days) has expired. The exclusion period runs from the first day you bought your policy for the number of days specified (60). The exclusion period normally only covers unemployment. This means that should you lose your job (or discover you will lose your job) during the exclusion period you will not be able to claim.

Using the example data above; if you purchased the policy on 1st January then you become eligible to claim for unemployment on 1st March. If you become aware that you are going to lose your job during the exclusion period the policy will not pay out.

Please remember the exclusion period does not normally affect claims for accident and sickness.

Once the exclusion period has expired then if the insurable event occurs (i.e. you are made redundant) and the insurable event continues until the end of the qualifying period (i.e. you are unemployed for 30 days) then you will be eligible to claim. Once the policy has started to pay, it will continue to pay the sum assured (£500pm) for the payment term of the policy (12 months). The policy will stop paying you if you are able to go back to work, or the payment term expires.

All policies have a qualifying or waiting period which means that you need to be registered as unemployed for 30 days in order to make a claim. Each policy will also have a voluntary excess period, which is the length of time that you chose to wait before the policy starts to pay out. So for example, with Back to Day One cover, you only need to be unemployed for the qualifying period (30 days) before the policy will start to pay out, and will pay you back to the first day of the claim. If you choose a 60 day excess (sometimes called a deferment period), you will need to be still without work after 60 days before the policy will start to pay, and they will then pay you back to the 61st day since you have been off work.

These policies are ideal for protecting all types of mortgage and/or your income against unemployment resulting from redundancy, or against accident and sickness. Policies can be issued on an individual or joint basis. Not all insurers offer joint policies. In our experience the premium is the same whether you by one joint policy or two individual policies.

These policies do not normally require any medical underwriting, although pre-existing conditions may be excluded.

Before 2009, most policies had no pre-defined term or renewal period. This meant that as long as you continued to pay your monthly premiums, and you met the insurer's eligibility criteria, then the policy would remain in force. Since 2009 some providers have added a renewal date to the policy, if your policy has a specified renewal date, the insurer does have the right not to offer a renewal.

Most policies also have conditions written into them that allow the insurers to alter the policy terms by giving you notice.

Terms and conditions mentioned above are common with all insurance policies of this type.

These policies do not pay out a lump sum. This means that if you have taken out a policy to protect your mortgage it will not pay off your entire mortgage debt if you were to die or suffer a critical illness.

The insurer will normally put a level on the maximum amount a policy will pay out each month. The maximum level that you will eligible for under the policy is usually determined by both your mortgage payment and a percentage of your gross annual income. You will therefore need to prove your income in the event of a claim. If you purchase a mortgage payment protection policy you will need to prove both your income and your monthly mortgage payments. 1st May 2016 - we currently feature a policy that will cover ALL of your regular outlay (including mortgage if you have one) as at the time of writting this article we find the cover more comprehensive and cheaper than stand alone mortgage payment protection. You will need to decide if it is suitable for your needs.

That’s the simple stuff.... for those of you who like more information, then there is a whole lot more detail below, as well as more details on some of our featured policies. Our quote systems are set up to offer you the cheapest policy which meets your requirements and eligibility. The policy wording relating to the policy we offer will be available via the quote system and will be sent to you electronically.

 

 

Mortgage & Rent Linked Income Protection - Comprehensive Information


We are not obliged to sell the policy of any particular company. We constantly review the policies we offer and can change them at any time.

We offer a policy that can be used to protect a mortgage or rent or a loan on anything else you wish - Below are the Core Conditions

We feature a policy that will allow you to insure your Mortgage Payments. You can also cover your mortgage related costs such as Life insurance, Buildings and Contents insurance and Endowment payments. The total cover on the policy must not be more than the policy maximum.

You can insure yourself for up to £3,000 or 65% of your gross earnings, whichever is the lower, but the total amount insured must not exceed 125% of your regualr outlay. This means that if your monthly mortgage payment were £200, but you wanted in take out the full cover of £3,000, then as long as your income and other outlay allows this amount of cover you can. This is not a specific mortgage payment protection product. This is a general income protection policy which you can use as you wish.

In the event of a claim you would only need to prove your income and any regular outlay. The insurer will allow you to prove your outlay at the start of the policy which will make submitting a claim much easier as you will not need to go through lots of admin to prove your claim and can get on with taking the necessary action to get yourself back into work.

This policy allows you to insure yourself against unemployment only, or accident and sickness only, or accident sickness and unemployment.

The payment term is 12 months. This means that in the event of a claim, the policy will continue to pay you a monthly amount until you either go back to work, get better, or the payment term ends.

The qualifying or waiting period is 30 days. This means that you must be registered as unemployed, or signed off work sick by a doctor, for 30 days in order to make a claim. This is usual for these types of policies.

The policy has a 60 day exclusion period for unemployment claims. This means that you cannot make a claim for unemployment in the first 60 days of holding the policy; this is standard practice as it stops people buying a policy one week and claiming the next.

However the insurer may waive this exclusion period if you are transferring cover from another insurer. If you are transferring cover, you will need to provide us with a copy of your existing insurance certificate in order to waive the exclusion period.

There is no exclusion period for accident and sickness claims, although pre-existing conditions may be excluded.


What you need to know

A Mortgage Payment Protection plan will give you peace of mind in the knowledge that your mortgage and other regular payments will be covered if you cannot work due to accident or sickness or if you are made redundant. Whilst your mortgage company must deal with your situation sympathetically and positively, ultimately your home is at risk if you do not keep up payments on a mortgage or other loan secured on it.

There is a 1 in 7 chance of a working adult being off work for more than 6 months due to illness or injury.*

More than 2 million people have been off work and claiming benefits for a period of 6 months or more.*

You are three times more likely to be off work for more than 3 months due to illness or injury than to die before age 65.*

* Source - Department for Work & Pensions (DWP), 2004

Mortgage Payment Protection & ASU

There is a great deal of confusion about Mortgage Payment Protection Insurance (MPPI) and Accident, Sickness & Unemployment Insurance (ASU). They are effectively the same thing. A mortgage payment protection policy is set up to pay mortgage related costs should you be in a position where you can’t make the payments yourself. It is also possible to insure yourself if you do not have a mortgage or pay rent, these policies are commonly known as Income Protection or ASU insurance (Accident, Sickness and Unemployment) .

Given recent issues in the payment protection market, we think it is simpler and clearer to use a general income protection policy rather than a specific mortgage payment protection policy. While the income protection policy can be used to protect your mortgage, rent or other loan, it has the other benefit of allowing you to insure any other expenditure you wish. In the event of a claim you would need to prove your income and any regular outlay.

Where a policy is specifically a mortgage payment protection policy the benefit typically must relate directly to your mortgage costs, although some policies will allow a small additional benefit to be paid if required. The vast majority of policies that will protect your mortgage are also linked to your income.

It is important to decide what eventualities you want to cover. Many self employed people would instantly lose their income if they were unable to work due to accident or injury, therefore they would seek to cover these eventualities. They may not however necessarily want to include unemployment cover as it may be difficult for them to prove in the event of a claim.

People in regular employment may not be as concerned about covering accident and sickness, if they feel their employer will pay them, but they may be concerned about redundancy and their chances of finding work elsewhere. In this case they may only want a policy that covers unemployment.

For the vast majority of people, both unemployment and the impact of long term sickness or injury are of sufficient concern to make them decide upon a policy that covers all eventualities.

A policy taken out to protect income normally allows you to insure a percentage of your gross income. It is not possible to protect all of your income, as the insurer wants you to be incentivised to return to work.

These policies were traditionally available upon application without the need for underwriting or medical examination. While many policies of this nature still exist there is a move to introduce policies which are underwritten at the time you buy your policy. In our opinion policies of this nature can be better for the customer as the insurer has less reason to reject a claim.

There are certain criteria that would not be covered in the event of a claim, and these are covered in detail in the policy wording for your specific policy. For example, you will not be successful in your claim for unemployment if you knew you were to become unemployed, or if the insurer considers that it was reasonable that you knew it was likely to happen, or if the unemployment is in any way voluntary.

Some of the large insurance companies issue policies that coincide with the term of your mortgage, however the most popular policies have no specific term or are renewable annually.

Income Protection Policies (IP or PHI) - Long Term Health Linked Policies

Mortgage Protection policies and short term income protection policies (ASU) should not be confused with Permanent Health Insurance (PHI) which pays out against accident and sickness only. These policies are linked to your earnings and typically have a term until retirement age. These are fully assessed insurance policies and medical underwriting will be required.

The main differences between Permanent Health Insurance Policies and Accident, Sickness and Unemployment policies are:

  • ASU policies will only pay for a short term period, typically 12 months
  • PHI could pay out for many years, possibly until retirement age
  • PHI does not cover unemployment or redundancy
  • PHI requires full underwriting
  • PHI is based upon your income and not your mortgage

Why these policies?

As an independent finance company, Platinum Financial Consulting is not committed to sell the policies of any one company.

We try to identify the best policy in each individual sector. We evaluate the policy available on a number of criteria such as the terms and conditions offered, the claims payment history of the company, the financial strength of the company providing the insurance and perhaps most importantly the premium.

Although we have many more policies available to us, the ones that we have selected are currently the policies which we consider to amongst the leading policies in their category. We can however stop selling a policy if a better policy becomes available, or the service offered by the company is not of a standard that we would accept for our customers.

Many of the companies who offer this insurance on-line are either selling their own policy, or trying to offer everything in the hope that you will buy something from them. We build a personal relationship with both our customers and the insurance companies who provide these policies. This means that we can ensure our customers are always receiving the best service available.

Our independence means that we can reject those policies that we feel do not offer both quality or competitive premium. We have removed products from our website which we feel are not in the best interests of our clients. Hitachi Capital cancelled the policies of many customers for no good reason whatsoever and, we believed, tried to impose an unfair contract condition on customers. Our view was upheld by the Financial Ombudsman. What was even more worrying was that Hitachi Capital refused to co-operate with the Financial Ombudsman, something they had a regulatory requirement to do. Fortunately for our customers we took the decision to stop selling Hitachi Capital's products several years earlier.


Overlapping Policies

If you are buying your policy to replace an existing policy that is still in force, then the exclusion period when a claim could not be made is normally waived. This means you could take advantage of any additional benefits and a cheaper price without any loss of cover. We cannot guarantee the exclusion period will be waived until speaking with the underwriter, so if this is important to you please declare it at the point of application.

Details of the existing policy would need to be provided to us as soon as possible.

This Policy Will Never Pay Out If:


You cease to be resident in the UK
or
if your disability or unemployment results from:
civil unrest, terrorism, radiation and radioactive contamination from nuclear waste or any related event or earthquake;
HIV or any HIV-related illness including AIDS;
or taking alcohol or drugs, unless under the advice or supervision of a doctor.

For full policy terms and conditions it is important that you read the policy wording appropriate to your specific policy.

 



Frequently Asked Questions (FAQ's)

 

 

Can I pay off my mortgage while I’m claiming for redundancy?

It is a condition of mortgage linked policies that once a mortgage debt no longer exists the cover must cease. It is an eligibility condition for mortgage linked policies that a mortgage liability must be in place. Some customers can forget this point and pay off their mortgage (or a large part of it) and still think they have cover. This is one of the many reasons why we have now switched to using a policy that no longer has a direct mortgage link. This means you can pay off your mortgage and still have full cover on your policy.

Whilst the idea of using a redundancy payment to pay off your mortgage might sound attractive, you do need to consider that you might be out of work for a long period of time, and having access to a lump sum may be preferable to any savings made against mortgage payments. We would recommend you take independent financial advice in such circumstances.

When is the exclusion period waived?

If you are taking out a new mortgage, or have remortgaged within the last 30 days, the insurer will normally waive the exclusion period when a claim could not be made. This is not the case with all policies so if this is an important issue for you please make us aware.

If you are buying your policy to replace an existing mortgage linked policy that is still in force, then the exclusion period is normally waived. However the insurer who underwrites your existing policy must not be the same insurer of your new policy. You will need to provide us with proof of your existing policy at the time of application, and you should not cancel your existing policy until you are sure the new policy is in place.

Can I have more than one mortgage protection policy?

Mortgage protection policies require that you cover your mortgage on the policy. You cannot cover the same mortgage payment on two policies, unless your monthly mortgage payment is more than the maximum allowed for the policy.

For example, you cannot take out two mortgage protection policies of £1000 each if your monthly mortgage payment is £500 per month. However if your monthly mortgage payment is £3000, and providing your income is sufficient, then you can take out two mortgage protection policies or income protection policies to cover your mortgage payment, one of say £2500 and one of £500.

You can of course top up an existing mortgage protection policy with an income-linked ASU policy, if your income allows. Please call us on 020 33 55 4834.

You will need to ensure that the insurers of both policies will allow you to run policies in tandem. All of the policies featured on our website can be run in tandem with other policies.

Is there unemployment cover with no exclusion periods or low exclusion periods?

In an ideal world, the best time to buy any insurance policy is just before the event against which you are insuring occurs. This means you pay very few premiums but still get the full financial benefit of the product. In many cases it is hard to tell when an insurable event is going to occur - none of us can predict if and when our home will be burgled. This means that when you buy home contents insurance, you are immediately on cover. You could buy a policy today and have a legitimate claim tomorrow. The world of employment is a little easier to predict. If you work in a specific sector or for a company that is in decline that may be enough to prompt you to buy unemployment insurance. That is fine, but the insurer will want to be certain that you are buying a policy because you have a general concern and not because you have certain knowledge that redundancies are coming.

Therefore all insurers require you to go through an initial waiting or exclusion period for unemployment at the start of the policy. This is only at the start of the policy. During this time it is not possible to make a claim. This is to stop people who are aware of impending unemployment applying for a policy.

If you are buying your policy to protect a new mortgage or remortgage, or you have completed on your mortgage within the last 30 days, the insurer may waive the exclusion period on your policy.

Also if you are transferring cover from another insurer, the exclusion period may also be waived. You will need to provide us with proof of your existing policy at the time of application, and you must not cancel your existing policy until you are sure the new policy is in place.


Do you offer joint redundancy policies?

We do have access to joint polices but they are becoming rare. This is because following the economic downturn insurers have had to become more sophisticated in calculating premiums. Where previously the premium was just based on the amount of cover you require, more often other variables are being considered such as age, location and employment type.

With respect to any policy we previously sold or any of the current polices we have on offer there is no premium saving to be made by holding a joint policy rather than two single policies. Furthermore by holding two separate policies it is possible for a couple each to insure 100% of their mortgage debt and / or the maximum possible depending on their income.

The following figures are examples only but the demonstrate how a couple may want to hold both individual and joint policies.

Assume that an individual has a mortgage payment of £500 per month and they buy a Mortgage Payment Protection Policy to cover the £500 at a cost of £20 per month.

A year later they get married and their partner agrees to pay 25% of the mortgage, or in other words £125 per month. They buy a new Joint Mortgage Payment Protection policy to reflect their respective liabilities. The first customer is insured for £375 per month and their partner £125 per month. The total cover is still £500 and the cost £20, exactly the same as the individual policy

On further consideration they realise that if one of them were to lose their income due to accident, sickness or unemployment then their entire financial situation would be affected and not just their ability to repay their mortgage. They therefore feel that irrespective of who loses their income, in such an event they want the insurance to pay the whole monthly mortgage payment. They therefore each decide to buy a policy for the full monthly mortgage liability of £500. Each policy will cost £20. This is £40 in total, because should they both be in a legitimate claim situation both policies would pay out.

PLEASE NOTE : The examples above demonstrate how joint polices have typically worked. They do not relate to any specific policy and do not necessarily reflect any specific policy being offered via this site. If joint cover is important to you and you want both yourself and your partner to be covered for 100% of the mortgage liability please call us on 020 33 55 4834.

 

 
These notes are intended as a guide only. They should not be considered as specific advice.

Upon application we will confirm you have supplied all necessary information, and inform you of the terms and conditions of the selected provider, before the policy comes into force.

If you think these notes are incomplete or misleading in any way, please contact us immediately

 
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