Burgesses cuts mortgage payment protection insurance costs
FINANCIAL ADVISER - 31ST JANUARY 2002
Burgesses has launched a protection scheme, cutting the cost of its mortgage payment protection insurance by 10 per cent.
The payment protection insurance broker is offering the mortgage Safetynet plan to both employed and self-employed borrowers. It covers mortgage payment and insurance premium protection for up to 12 months for unemployment or disability.
Customers taking out the policy to protect a new mortgage or to remortgage get the first three months free.
There is a three-month exclusion period. If a transfer is made from another insurer it will be waived provided the policy had been held for at least six months and no claims have been made.
It includes full unemployment and disability cover of unemployment only or disability only cover at a reduced cost. Back-to-day-one benefits are payable after 30 days with claim benefits payable for up to 12 months.
Maximum amount of monthly cover is either £1,500 or 65 per cent of normal income. The cost of cover per £100 of monthly benefits work out to £3.95 for unemployment and disability cover and £2.45 for unemployment only or disability cover only.
Vivienne Starkey, a partner of London-based IFA Equal Partners, said: “It is interesting that it is possible to separate unemployment and disability.
“Unemployment is not easy to claim for self-employed people. Flexibility is always a good thing and the rate seems quite competitive.”
