income protection insurance

The benefits of having this insuranceThis insurance has been designed to overcome the consequences of unemployment or disability and to provide the following unique benefits:

• You do not need to have a mortgage to be insured under this insurance. However, being totally flexible it can cover a monthly mortgage payment, or rent, loans, household bills or any other purpose you require.
  
  
• Highly competitive premiums payable monthly by direct debit.
  
  
• Benefits are tax-free.
  
  
• Back-to-day-one benefits are payable for 12 months.
  
  
• Unemployment only cover, or disability only cover, or both combined.
  
  
• The self-employed, directors and proprietors of businesses are covered if their business ceases to trade and is formally wound-up.
  
  
• No premium loading on the basis of age or gender.

The risk of accident, sickness and unemployment

• 90 families a day had their homes repossessed in 2000. The majority due to the financial problems associated with unemployment.
  

• One in three people aged between 25-34 have experienced unemployment for a period in excess of one month.
  
  
• Almost one in five working age households (3.4 million) have someone who is currently unemployed.
  
  
• Today in Britain there are almost 1,000,000 persons who are registered as unemployed.
  
  
• Every day 500 people in the UK become unemployed. 60% of unemployed men and 45% of unemployed women will be out of work for six months or more.
  
  
• Every adult in Britain is five times more likely to suffer a serious disability than die before the age of 60.
  
  
• Today in Britain, 2,900 people will start claiming state disability benefits.
  
  
• 1,800,000 people in Britain are already disabled and have been unable to work for 12 months or more.

Will State benefits help?

You can no longer rely on the Government. State benefits for a single person are currently under £60 per week. Could you manage on that? The typical state benefit for two adults with two children is £96 per week; the maximum is £134 per week. Could you support your family on this?

Since October 1995 new mortgage borrowers will receive no state help for the first nine months of unemployment or disability. Existing mortgage borrowers receive nothing for the first two months, only 50% for the next four months and then full benefit for mortgages of up to £100,000 provided they qualify for Income Support. The Government themselves estimate that 70% of mortgage borrowers will not get Income Support due to savings, income, or a working spouse or partner.

In 1998 alone, the introduction of a new incapacity criteria resulted in 102,000 claimants being turned down for state benefit. An independent doctor (not your own) will carry out your assessment and you must be incapable of doing any work, not just your normal job, to qualify for state benefit.