Income Protection Insurance and mortgage protection insurance

 

Our income protection insurance policies.

Income protection insurance > combined income protection and mortgage protection insurance > information about

(income protection insurance)

We have several income protection insurance policies for UK residents, underwritten by different income protection insurance companies. Clicking the link will open the product in a new window so you can easily compare them. As we cannot provide online advice which income protection insurance policy would be most suitable, we have provided general selection criteria. If you want an individual quotation, discuss your needs or have any further queries as to which income protection insurance or mortgage protection  policy (or policies) we recommend please ring us on 0870 7456247.

Comparison between our policies

Option no

Product

Key Features

1

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(income protection insurance)
  • Up to £1,000 per month or 50% of gross monthly earnings
  • No mortgage needed
  • Benefits paid for 12 months
  • No excess - benefits paid back to day one after 30 days.
  • Unemployment only : £4.00% - combined £5.00%
  • 120 day initial exclusion period
  • Not suitable for IT/ telecoms as underwriters usually decline

2

Goodmortgageprotection

(mortgage)

  • Mortgage protection insurance. 
  • 12 month benefits
  • Choice of unemployment only or combined accident/ sickness/ redundancy
  • Cover up to £1,500 per month or 65% of salary or mortgage payments + 25%
  • Rates start from £2.45% unemployment only or £3.95 combined ASR
  • Back to day one cover
  • No initial exclusion period for new mortgages/ remortgages/ transfers

3

Cleva Protecta

(mortgage and income protection insurance)

  • Up to £2,500 per month or 75% of gross monthly earnings
  • Non-mortgage related cover limited to £1,500 per month
  • Back to day one cover after 30 days
  • Mortgage element can be unemployment only (£3.5%) or combined ASR (£5.5%)
  • Income protection insurance is combined cover only (£6.25%)
  • Initial exclusion period - 30 days mortgage payments, 90 days income protection insurance

4

Bespoke Quotation
  • Quotes if you need to cover monthly bills
  • Maximum cover = twice largest bill e.g. twice monthly mortgage payments or rent payments or loan payments

5

Goodloanprotection

(loan protection)

  • Designed for people who wish to protect loans up to 5 years
  • Cover includes life and critical illness insurance
  • 12 months unemployment, accident and sickness benefits incorporated
  • A LOT cheaper than schemes offered by banks and loan companies
  • If you are considering a car loan or finance why not look at our GAP insurance policy

6

DMS

(mortgage and income protection insurance)

 

  • Income protection insurance, mortgage protection insurance or combined
  • Maximum of £1000 per month or 50% of gross income for income protection insurance only
  • Maximum of £1500 per month for combined income/  mortgage protection insurance
  • Maximum of £1500 per month for mortgage protection insurance only
  • Choice of back to day one, 30 day excess, 60 day excess rates
  • Typical rates £5.00%, £4.25% and £3.75%  unemployment only - income protection insurance only
  • Typical rates £6.25%, £5.25% and £4.75%  combined cover - income protection insurance only
  • Typical rates £3.55%, £3.00% and £2.70% unemployment only - mortgage protection insurance
  • Typical rates £4.35%, £3.65% and £3.40% combined cover - mortgage protection insurance

7

DMS - High Risk

(mortgage and income protection insurance)

  • Suitable income protection insurance for people in high-risk occupations wanting cover not related to a mortgage.
  • High-risk occupations are those in Information Technology, Telecommunications, Media, Airlines Airports and Travel, certain elements of Financial Services (Investment Banking, Stockbroking, Dealing in Securities, Money Broking), Recruitment.
  • Whether you fall into this category depends on your employers business - not yours - e.g. a computer technician working for a manufacturer would not be regarded as high risk for this policy,
  • Maximum Benefit £1000 per month
  • Combined accident/ sickness and redundancy cover only
  • 60 day deferred (payable on day 91)
  • Typical rate £9.5%

Comments

There are, of course, more reasons than just price to choose a policy: Other factors should be considered such as initial exclusion periods, whether a back to day one option is available, if there is a premium refund or if mortgage payments will be refunded even if there is an existing sick-pay scheme with your present company. 

We do not recommend unemployment only if you can afford combined cover as e.g. if you are off sick when claiming jobseekers allowance your benefit is stopped and if you then sign back on the claim may be invalidated. Also even if your company has a sickness package, if you are made redundant you would no longer qualify for it and if you were then sick you could not claim under the unemployment section of your policy. 

For widest cover you should also have a permanent health insurance policy with a 52 or 104 week deferred period. A Free quote can be obtained by phoning NEIFS (who are independent financial advisers) on 0191 4952395 quoting reference: Portwood

Most policies are available on-line.  You may request an income protection insurance prospectus/ proposal form if needed (or for further information/ advice).

We recommend you take out full cover with a mortgage protection insurance policy and as much as you can afford or qualify with the income protection insurance policy as, after all, even if your mortgage payments are covered you still have to pay other expenses. Please note that policies written as mortgage or loan protection with benefits paid to a third party will not count as income. This could be important if you could be eligible for income support after 6 months (not many people are) - as an income protection insurance policy would be classed as a source of income (according to our understanding of current legal position)

Information is provided on these policies to help you make a decision. We do not make a personal recommendation as to the suitability unless you contact us to discuss your demands and needs.

Why some policies may be excluded

Excess  or deferred period : This is the period which is not covered from the date that you are first able to claim jobseekers allowance. This is NOT the same date that your employment ceases. If for example you were paid 3 months wages in lieu then the excess period  starts after the three months. 

Benefit Period : How many payments will be made?

If you want more cover than a single income protection insurance policy can provide

You can in certain circumstances combine policies, providing that the total benefit you choose is less than the LOWEST percentage offered by a single company. Our general advice is that you take out as much mortgage payment protection insurance as are allowed and top it up with one of our income protection insurance policies.

You CAN have the following if you have no mortgage

  1. Goodincomeprotection  (£1,000 per month cover) 

  2. Cleva Protecta                  (£1,500 per month cover) (Suitable for high percentage cover)

  3. DMS                                     (£1,000 per month)

If you HAVE a mortgage you CAN have the following (subject to some mortgage limits)

  1. Goodmortgageprotection         (£1,500 per month cover) OR (this our recommended MP Unemployment product)

  2. Cleva Protecta                             (£2,500 per month cover)  OR

  3. DMS                                                (£1,500 per month)

    AND

  4. Goodincomeprotection  (£1,000 per month cover) 

I want to insure a high percentage of my salary

You can't insure all your salary as the benefits are tax free and there must be some incentive for you to go back to work. Below are the products listed in percentage order.  The total cover you can choose as a percentage will depend on the lowest percentage product you select.
Product Maximum cover Maximum Percentage
     
Cleva Protecta £2,500 (£1500 IP) 75
Goodmortgageprotection £1,500 (MP + 25%) 65
Goodincomeprotection £1,000 50
DMS £1,500 (£1000 if IP only) 50

I want unemployment cover to start as soon as possible

NB - if underwriters form the reasonable opinion that you expected unemployment when you took out the policy they will refuse the claim

Below are the initial exclusion periods for unemployment cover.

Product Conditions initial exclusion period
Goodmortgageprotection New Mortgage/remortgage

NIL (3 or 6 months free cover)

DMS All  60
Cleva Protecta Mortgage element 30
Cleva Protecta Income Protection insurance element 90
Goodincomeprotection All 120
DMS High Risk 120

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