Mortgage Protection Insurance

Do you need Mortgage Payment Protection?

How would you manage if you couldn't pay the mortgage? If you lost your job, fell seriously ill or had an accident? If you're self-employed how would you pay the mortgage if you were unable to work?

And if you think the unexpected always happens to someone else, think again!

Every two minutes someone is diagnosed with cancer in the UK. (CancerStats Key Facts – Cancer Research UK December 2011)

More than 1 in 3 people will develop some form of cancer during their lifetime. (CancerStats Key Facts – Cancer Research UK December 2011)

Almost one in five men and one in eight women die from heart disease (www.bhf.org.uk)

331 people are declared insolvent or bankrupt every day. This is equivalent to 1 person every 60 seconds during each working day. ( Credit Action - January 2012)

How long could you manage without protection?

Very few of us have the financial means to cover living costs with no income. Ask yourself these questions:

• How long would your savings last if you were out of work for any length of time?
• If you were made redundant how much would your employer pay you?
• If you're self-employed how long could you pay the bills and the mortgage if you are too ill to work?

And don't forget your home may be repossessed if you can't make your mortgage repayments.

Shocking stuff if you've not considered it before. But these issues shouldn't keep you awake at night if you protect your mortgage with helpucover Mortgage Insurance.

Social Security benefits - the uncomfortable truth

If you earn on average £95.00 or more per week, your Statutory Sick pay entitlement is only £81.60 per week. Could you and your family survive on £353.60 a month?

• No mortgage assistance is available for the first 3 months of unemployment
• No assistance towards the portion of your mortgage that exceeds £200,000
• No assistance if your partner works more than 24 hours a week
• There is limited financial help through the State Benefit System (Income Support for Mortgage Interest ISMI) but it only applies to Mortgage Interest, not Capital Repayments or other mortgage related out-goings such as insurance premiums
• ISMI is only paid at the Standard Rate, which may not match the rate your Mortgage Provider is charging.
• ISMI is means tested, which means there isn't a guarantee it will be paid.

Unemployment - more shocking facts

• 1,764 people a day reported they had become redundant between August and October 2011 (Credit Action - January 2012)
• The number of unemployed people was 2.63 million in the three months to March 2012 (source Office of National Statistics - labour market statistics May 2012)

All the protection you need:

• Cover available for up to £2,000 a month for a year, or 50% of your gross monthly income, whichever is less.
• Benefits paid up to 6 or 12 months
• Paid direct to you in addition to any other benefits (i.e. Statutory Sick Pay)
• Personalised quotes whatever your circumstances - up to age 65
• Range of cover options, no matter if you're employed or self-employed*
• Benefits are payable after 30 days
• Typical monthly premium for £700 monthly benefit is £21.21**
• Cost per £100 of cover is £3.03**

* Please note however we are unable to offer Unemployment cover to self-employed customers.

** Based on Accident, Sickness & Unemployment cover for someone aged 35, non-smoker, Back to day 1 cover, 12 month benefit.

There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk

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