Protection against grim prospects
THE MONEY OBSERVER - 1ST DECEMBER 2002
Concerns about job insecurity were with us long before Eddie George, governor of the Bank of England, upset those living in the North East by appearing to suggest that their unemployment was an acceptable price to pay to curb inflation. In 1996/1997 around 96,480 mortgages were in arrears due to job loss.
Little surprise, therefore, that there has been a marked increase in the number of mortgage protection and unemployment insurance policies. Income Safetynet, providing cover against the risk of unemployment, is a new policy from underwriting agency Berkeley Alexander. Premiums range between £3.25 and £3.75 for every £100 of monthly benefit and the policy is available to all UK residents aged between 18 and 61.
Safetynet does not have to be linked to any outstanding debt.
City underwriting agency Burgesses is claiming a UK first with Equality, its new mortgage payment protection insurance. The twist is that the wide cover includes sexually transmitted diseases such as HIV, and any physical complications that arise from pregnancy.
The policy provides individual or joint protection against the risks of disability and unemployment and is available to UK residents aged between 18 and 65.
Pearl Assurance also has new Mortgage Payments Protector policy, while Legal & General has revamped its existing Mortgage Payment Insurance to include unemployment cover.
Mortgagecare, a new range of mortgage payment protection insurance from Capital Bank, the Bank of Scotland subsidiary, offers three tiers of cover and customers can decide whether they want protection against unemployment, or accident and sickness, or all these perils. There is a five-year guarantee of cover and guaranteed fixed premiums. The insurance is open to non-bank customers.
