A new insurance policy, which provides unemployment, disability and carer cover for new and remortgage borrowers, has been launched by British Money Limited.
Universal Cover (UC) pays benefits if you are unable to work due to disability – i.e. an accident or sickness that is certified by a doctor – unemployment or if have to give up work to become a carer for a member of your immediate family on a full-time basis.
Unlike traditional mortgage payment protection insurance (MPPI), UC is more aligned to income protection and can pay up to 60 per cent of gross monthly earnings (or £2,000), instead of just the mortgage payment and related bills that MPPI covers.
The first three months cover is free, there is no excess so any claims go back-to-day-one cover after 30 days and there is no initial exclusion period.
Provided that a customer does not have a pre-existing medical condition when taking out UC, many medical conditions are included that ASU (accident, sickness and unemployment) policies exclude.
Conditions included in UC are Alzheimer’s, asthma, blindness, deafness, cancer, heart diseases, complications of pregnancy, epilepsy, haemophilia, hepatitis, HIV, high cholesterol, high blood pressure, multiple sclerosis, osteoarthritis, osteoporosis, Parkinson’s Disease, renal failure, rheumatoid arthritis and schizophrenia.
For ASU policies many of these medical conditions are considered either ‘chronic conditions’ or difficult to diagnose, such as in the case of backache and stress related conditions, which are also covered.
The premium is £4 per £100 after the first free three months and the maximum claim payment period is 12 months.
Universal Cover is only available to new borrowers or those remortgaging. However, cover and benefits can continue after the mortgage has been repaid or the home has been repossessed or sold; and disability benefits are payable in addition to employer sick pay.
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