Income protection incorporating cover for loss of earnings arising from accident, sickness or unemployment. Usually paid out in the form of a monthly tax-free income to cover a portion of lost earnings and restricted to two years from the date of the first payment.
Insurance cover arranged by the borrower to protect against inability to meet mortgage payments. This cover could be more accurately described as accident, sickness and redundancy insurance as unemployment cover is generally restricted to cover only events that are entirely beyond the control of the insured person. Typical exclusions include dismissal following professional misconduct and any act of voluntary redundancy. The accident and sickness cover will also be subject to exclusions such as any act of self-injury or any injury related to the use of alcohol or drugs.
Insurance that covers for loss of earnings arising from accident, sickness or unemployment. Normally paid out as a monthly tax-free income to cover a portion of lost earnings and restricted to two years from the date of the first payment.
Insurance cover arranged by the borrower to protect against inability to meet mortgage payments. Unemployment cover is restricted to cover certain events only. Exclusions to this insurance include dismissal due to professional misconduct or taking voluntary redundancy. The accident and sickness cover does not cover any act of self-injury or any injury related to the use of alcohol or drugs.
An insurance policy arranged by a borrower to help meet mortgage repayments should accident or illness strike. The unemployment cover really means redundancy, rather than someone who makes themselves unemployed through resignation or sacking. Other exclusions might include self-injury or accidents caused by the misuse of alcohol or drugs. Once you start claiming, ASU cover normally only lasts for 12 months. Once that period is over, you will be expected to meet the mortgage payments yourself.
The policy pays a percentage of the usual monthly mortgage payment after a waiting period (with some plans an element of extra cover is allowed for household bills) if the borrower cannot work because of accident/sickness or unemployment/redundancy. Payments are made for limited periods of time 6, 12 or 24 months or until the borrower returns to work. N.B. The following would preclude the payment of benefit: Voluntary redundancy, summary dismissal for misconduct (the sack), self injury and injury arising from the misuse of alcohol or drugs.
This is a form of insurance taken out to cover your mortgage repayments in the event that you are made redundant or suffer an illness or accident (as included in the policy) that leaves you unable to work.
In the event of an accident, sickness or involuntary unemployment befalling a borrower, this insurance will cover their mortgage repayments. Some Lenders attach mandatory insurance cover to their most attractive rates, although this is increasingly uncommon. Also known as: Mortgage Payment Protection Insurance (MPPI).