Mortgage Payment Insurance - Information
Our Mortgage Payment Insurance Plan is designed to help pay monthly mortgage payments if the Life Assured suffers an illness, accident, or for an extra premium, if they become unemployed and are unable to work resulting in a loss of earnings.
This plan is only available with a new mortgage, re-mortgage or further advance on an existing mortgage.
At the time of a claim, the benefit will be paid after a deferred period which is chosen at outset. The deferred periods available are 4*, 8, 13, 26 or 52 weeks. After the chosen deferred period, a monthly benefit will be paid to help pay the monthly mortgage payments. The Life Assured can decide the amount of monthly benefit up to a maximum of 140% of the monthly mortgage payment, or 50% of their pre-incapacity earnings up to £45,000 together with 20% of their pre-incapacity earnings over £45,000.
During a claim period, the premiums will continue to be paid for the Life Assured so that the plan can continue to provide cover.
Benefit is payable until the Life Assured is fit enough to return to work, they reach retirement age, reach age 69 or die - whichever happens first.
*The 4 week deferred period is only available for certain occupations.
Benefits move in line with our stablised interest rate** to help ensure that the Life assured is covered for any fluctuations in interest rates
**A variable rate which will never be more than 15% or 1% different from Woolwich’s standard variable rate applicable for new mortgage advances. If this rate is unavailable, we will use an appropriate rate from another UK mortgage lender.
The Mortgage Payment Insurance Plan automatically includes SmoothMove, provided by Inter Partner Assistance (a 24 hour moving day rescue service) will also be included. This also provides cover for up to three months after the moving date for domestic emergency repair and legal advice.
Some of the following options and benefits may not be available. However if they are they must be chosen at the start of the plan and there may be an additional cost.
Benefits automatically included
- Further Mortgage Option
- Proportionate benefit
- Rehabilitation benefit
- Linked claims
- Waiver of premium
Options
- Two single life policies to cover a joint mortgage
- Unemployment cover
- Definition of incapacity
- Immediate cover
All the above are subject to terms and conditions which can be found in the policy document or the Mortgage Related Plans technical guide, which is available on request.
