FAQ- What is Mortgage Protection ?
How does the plan work?
Your mortgage
protection assurance plan provides you with:
Life Cover
To pay out if you die or become eligible for Terminal Illness benefit,
(for example, where life expectancy is less than 12 months) during the
period of cover; whichever occurs first. (NOTE: Periods of months
noted above may vary between Life assurance providers) .
Terminal
Illness Cover
Where available this is included automatically,
for plans with a term of two years or more at no extra cost. This pays
the guaranteed sum immediately (instead of on death) if you are
diagnosed as being terminally ill, with a life expectancy of less than
12 months. This cover does not apply during the last 18 months of the
period of cover. Full details and conditions are provided in the
individual Life assurance company literature.
You must
pay all premiums due to keep your cover in force.
All cover
is subject to terms and conditions which will be fully detailed in
your policy document. Please also see "When will the plan not pay
out?" section. In some cases we may need medical information
before we agree to provide cover.
How long
can the plan last?
You also decide how long you want the
cover for. The term of the plan can be up to 40 years or more. *If one
year term is chosen then the Terminal Illness Cover may not apply.
Who can the plan cover?
You can apply for the plan to cover:
You alone
You
and another person, or
One or two people not
including you
If the plan covers two people it will only
pay out once. This would be when the first of you dies or becomes
eligible for Terminal Illness benefit; whichever occurs first. The
plan will then end and no further benefit will be paid.
How much does the policy pay out?
You
decide how much benefit you would like this plan to pay out. The level
of benefit and the period of cover you choose will determine your
premium. The plan only pays out benefit once and then all cover ends.
Mortgage Protection assurance plans are normally taken in conjunction
with a capital and repayment mortgage. The Life Insurance decreases in
line with a capital and repayment mortgage so the amount of life
insurance will diminish to zero over the term of the policy.
The
www.GoForCustomer.co.uk
on-line quotations provide all the personal illustrations, key facts
and key features documents to enable an informed choice of the period
of cover, how much cover you have chosen, whether other additional
benefits are included and your premium.
When will the plan not pay out?
- If you do not truthfully provide all the information we ask for on your application form or when you claim.
- If the policy has ceased due to non payment of premiums.
- If you commit suicide in the first 24 months of the plan. (Time period may vary, please check the individual Life assurance company literature)
What other options are available?
Some of these benefits are optional such as Waiver of Premium Benefit and Indexation. If required, they must be chosen at the start of the plan and there may be an additional cost. For full details see the Life Assurance companies literature
Waiver of Payment Benefit
You can choose to include Waiver of Payment benefit. This benefit means that you do not have to pay your premiums if you cannot work for six months or more as a result of illness or injury. Although you must continue to pay your premiums at first, after 26 weeks incapacity the Life Assurance company will waive your premiums.
If you are not in gainful occupation, you do not have to pay your premiums after 26 weeks.
The Life Assurance company will determine whether you are eligible for Waiver of Premium Benefit and their terms an conditions of Waiver should be understood. These are available in their Technical guide.
The Life Assurance Company will continue to waive premiums until:
-you no longer qualify for waiver
-you reach the end of the policy term or maximum age for Waiver of Payment Benefit
-you die.
Whichever is the earliest.
Can I increase the amount of cover later on?
Some Life Assurance Companies provide that you may increase the amount of cover later on without the need for further medical evidence up to certain limits. This is called a Guaranteed Insurability Option.
You can do this if:
-You get married or enter into a Civil Partnership.
-You become a parent.
-You increase your mortgage because you are moving home or extending your home.
If you are under the age limit when you apply and your application is accepted on normal rates, the Life Assurance Company will not ask any more medical questions and the rates at the time of the increase will apply. The limits which apply are set out in your policy document.
Will my payments ever go up?
our premium is stated as guaranteed.
This means that for Guaranteed:
Your monthly(or annual) payment will stay the same throughout the term of the plan.
What are the charges?
The premium payments shown in your illustration include all the costs of administration, underwriting, claims, commission and selling expenses.
What if I am not sure whether this product is suitable for me?
If you have any doubt about whether Mortgage Protection Life assurance is suitable for your circumstances, please read our "Find Out More" section from the "Life Assurance" tab on our home page.
How do I make a claim?
If you need to make a claim, please mail us at: info@goforcustomer.co.uk or contact us.
You may also contact your Life assurance provider direct.
When we receive notification of a claim we will send you a claim form to complete and return. You are likely to be asked to provide certificates or other evidence as required.