The
risk of unemployment and sickness or accident
- 90 families
a day had their homes repossessed in 2000. The majority due
to the financial problems associated with unemployment.
- One in
three people aged between 25-34 have experienced unemployment
for a period in excess of one month.
- Almost
one in five working age households (3.4 million) have someone
who is currently unemployed.
- Today in
Britain there are almost 1,000,000 persons who are registered
as unemployed.
- Every day
500 people in the UK become unemployed. 60% of unemployed men
and 45% of unemployed women will be out of work for six months
or more.
- Every adult
in Britain is five times more likely to suffer a serious disability
than die before the age of 60.
- Today in
Britain, 2,900 people will start claiming state disability benefits.
- 1,800,000
people in Britain are already disabled and have been unable
to work for 12 months or more.
The benefits of having
this insurance
This policy
will help you to protect your mortgage payments and insurance
premiums for up to 12 months if you become unemployed or suffer
a disability (accident or sickness).
If you are
taking out the policy to protect a new mortgage or re-mortgage
you will receive the first three months cover completely FREE
OF CHARGE.
If you are
taking out the policy to protect an existing mortgage, then subject
to the unemployment exclusion detailed below, you will receive
the first three months cover completely FREE OF CHARGE.
Unemployment
Exclusion – if you are taking out the policy to protect an
existing mortgage, you will not be covered against any unemployment,
which occurs during the free cover period. This exclusion will
not apply if you transfer your cover from another insurer; provided
your existing policy has been in force for at least six months
and you have not made a claim under that policy.
The main benefits
and features of the policy:
- It provides
full unemployment and disability cover. Unemployment only cover
or disability only cover is available at a reduced cost.
- Free cover
benefits for both new and existing mortgage borrowers.
- Competitive
premium rates after the free cover period.
- Back-to-Day-One
benefits payable after 30 days.
- Claim benefits
are paid for up to 12 months.
- It covers
employed and self-employed applicants.
- Simple
application procedure (no medical required).
- Cover can
be transferred from one lender to another.
Will State benefits
help?
You can no
longer rely on the Government. State benefits for a single
person are currently under £60 per week. Could you manage
on that? The typical state benefit for two adults with two
children is £96 per week; the maximum is £134
per week. Could you support your family on this?
Since October 1995 new mortgage borrowers will receive no state
help for the first nine months of unemployment or disability.
Existing mortgage borrowers receive nothing for the first two
months, only 50% for the next four months and then full benefit
for mortgages of up to £100,000 provided they qualify for
Income Support. The Government themselves estimate that 70% of
mortgage borrowers will not get Income Support due to savings,
income, or a working spouse or partner.
In 1998 alone, the introduction of a new incapacity criteria resulted
in 102,000 claimants being turned down for state benefit. An independent
doctor (not your own) will carry out your assessment and you must
be incapable of doing any work, not just your normal job, to qualify
for state benefit.
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