Burgesses Shelter
HEALTH INSURANCE - 3RD JUNE 2003
The company:
Burgesses’ underwriting agency is a lading player in the mortgage payment protection insurance market and specialises in undercutting high street lenders. This product is underwritten by Compass Underwriting at Lloyd’s.
The product:
Burgesses’ latest mortgage payment protection insurance plan follows its traditional format of beating the high street lenders at their own game by undercutting them on rates but providing similar cover levels.
Maximum benefits is £2,500 a month up to 75 per cent of gross monthly income. There is no requirements to link the sum insured to the borrower’s actual mortgage payments.
The plan has a 30 day initial exclusion period, which is extended to 60 days if the plan is not taken out within 30 days of starting a mortgage. Where a client is switching from another mortgage payment protection insurance or unemployment insurer with whom they have been insured for at least six months, and has not made a claim, the initial period is waived.
Shelter is available to UK residents aged 18 to 64 who have been in continuous employment for at least six months and benefits are payable for either 12 or 24 months.
The plan can continue up to age 65, although the underwriters have the option to discontinue cover at 30 days’ notice.
To claim under the unemployment benefit, the client must have been in continuous employment for at least six months.
The self-employed and ten per cent plus shareholders may only claim unemployment benefits if their business ceases to trade.
Exclusions are fairly standard, but mental conditions are only covered where a consultant confirms that the conditions solely prevents the client from working. The same rules applies to back conditions, unless there is clear radiological or visible evidence of damage.
There is no premium loading for age, sex, occupation or smoking status.
For each policy sold, Burgesses will pay a £20 donation to homeless charities.
Options:
Sum insured, type of cover and benefit payment period.
Marketing:
A key features document explains the plan and includes premium rates, an application form and a direct debit mandate.
Customer care:
The 12 page A5 key features document is written in a straightforward Q&A format and includes details of how to claim and the complaints procedure. The ultimate arbiter for claims is Lloyd’s complaints and advisory department.
Commission:
20 per cent each year.
What they say:
Burgesses’ managing director Simon Burgess says: “With recent highly publicised cases of mass unemployment, the need for this type of protection is self-evident.
“Shelter goes much further than most mortgage payment protection insurance policies in that one can also cover the cost of food, clothing and all other living expenses.”
What we say:
Mortgage payment protection insurance is a better bet through brokers than it is through lenders usually, yet most borrowers still choose to take the policy offered by their lender.
With 90 families a day having their home repossessed last year, and only limited state supported for mortgage borrowers who become ill, disabled or unemployed, there is clearly a need for this type of cover for many people. Shelter can offer lower premiums while the idea of a payment to a homeless charity may also appeal to some borrowers. As always though, it pays to shop around with mortgage payment protection insurance.
Health insurance rating: 3 out of 5.
