Eligibility
To remain eligible for the cover during the life of the policy, your client must meet with all of the following requirements:
- The benefit from this policy must be used to protect mortgage payments on a property in which they permanently live, in the UK, Channel Islands, or Isle of Man
- Your client has the right to live in the UK, Channel Islands or Isle of Man
- Your client is a permanent resident of the UK, Channel Islands or Isle of Man
- Your client is aged between 18 and 64
- Your client is working for at least 16 hours a week within the UK, Channel Islands or Isle of Man or working outside the UK, Channel Islands or Isle of Man for either:
- Armed Forces, Civil Service; or
- A company registered in the UK, Channel Islands or Isle of Man and your client is assigned to work in the European Union.
In addition, to be able to apply for this cover:
- Your client must have been working for a minimum of six consecutive months immediately before the policy start date; and
- Your client must be unaware of any unemployment which they have been notified of either verbally or in writing; or which they should have reasonably been aware of as a possible consequence of an announcement by their employer of a reorganisation or restructure or programme of redundancy on or before the policy start date.
Note: if your client owns 25% or more of the shares in their business, we consider them to be self employed.
Key exclusions
Disability
Your client will not be covered for:
- the first 18 months of the policy for any medical condition for which your client has had symptoms, treatment or medical advice during the 12 months before the policy starts*
- stress, anxiety, depression or any nervous disorder, unless confirmed by a consultant
- backache or back related conditions, unless confirmed by a consultant
- elective or cosmetic surgery which isn’t medically necessary
- any self inflicted injury
- any injury suffered through a willful or criminal act
- drinking alcohol or drug abuse
- normal pregnancy
- war, riot, radioactive contamination or nuclear accident.
* Your client must also remain free of symptoms and not consult a doctor or consultant, or receive medication, monitoring advice or treatment for an 18 month period after the start date or amendment date of the policy before we can consider a claim for the same or related condition.
Unemployment
Your client will not be covered for:
- any unemployment your client was notified of, either verbally or in writing; or which they should have reasonably been aware of as a possible consequence of an announcement by their employer of a reorganisation or restructure or programme of redundancy on or before the policy start date.
- unemployment that is voluntary, including resignation or due to misconduct
- unemployment after temporary, casual or seasonal work, or if unemployment is a regular feature of your client’s work
- unemployment caused by failure to meet performance standards or targets in the first six months after commencing work for a new employer
- unemployment following the loss of your client’s driving license from a motoring offence or combination of motoring offences
- any temporary periods they are without work if your client is self employed
- war, riot, radioactive contamination or nuclear accident.
Special note for contract workers:
If your client is made unemployed from a fixed term contract, they will only be entitled to unemployment benefits if at the time they were made unemployed:
- Your client was with the same employer for at least six months and their contract had been renewed at least twice (for a minimum six months duration). They will only be entitled to unemployment benefit if their contract is terminated early. Unemployment benefit will be paid to the end of the contract term or to the date of your client returns to work, whichever is first.
- Your client was on a yearly contract that had been renewed at least once prior to them being made unemployed. They will only be entitled to unemployment benefit if their contract terminated early. Unemployment benefit will be paid to the end of the contract term or to the date of your client returns to work, whichever is first.
- Your client was under contract to the same employer for a period of at least 24 consecutive months immediately prior to them being made unemployed. Up 365 day’s benefit will be paid or they will receive benefits up to their return to work, whichever is first.
Qualifying periods
The qualifying period applies at the start date and amendment date of the policy. It is a period of time in which there is no cover and a claim can’t be made. There are three qualifying periods:
- For a new borrower, the 60 day qualifying period for unemployment commences from the start date or amendment date for cover
- For an existing borrower the 120 day qualifying period for unemployment commences from the start date for cover or 60 days from the amendment date for cover (provided the 120 day qualifying period from the start date has expired)
- There is no qualifying period for accident and sickness.
Borrower type
New borrower - when your client arranges this policy within 14 days of arranging a new mortgage, remortgage, further advance or mortgage product switch.
Existing borrower - when your client arranges this policy at a different time to their new mortgage, further advance or mortgage product switch.
For full cover details, please refer to the MPPI Key Features document.