Mortgage insurance policy wording:

2. How the policy works

• You select the amount of cover you need to protect your mortgage payment. Where your mortgage agreement allows you to make variable payments to your lender (e.g. a flexible mortgage plan), this should be the average monthly amount you intend to pay;
  
• You select the type of cover you require.
  
• You select the benefit split you require.
  
• You pay a monthly premium to keep the policy in force.
  
• We pay a fixed monthly benefit for up to 12 months if you are unemployed or disabled (as applicable) for longer than the waiting period.

Important note - The most we will pay as a monthly benefit is £1,500 or an amount equal to 65% of your normal income, whichever is the lower.

3. The type of cover the policy provides

The type of cover provided under the policy is unemployment and disability insurance. This will offer you maximum protection in the event of a claim. You can (if required) restrict your policy to unemployment only cover or disability only cover but you must be aware of the following facts:

• if you take out unemployment only cover you will not be able to claim for any disability. If you suffer a disability during any period of unemployment, your monthly benefit payments will be suspended until you are able to continue actively seeking work; or
• if you take out disability only cover you will not be able to claim for any unemployment. If you become unemployed during any period of disability, you will only be able to continue to receive monthly benefit while you remain disabled.

4. The number of people who can be insured (the benefit split)

• If your mortgage is in your name only, or your mortgage is in joint names and you are the only person who is eligible for cover, we will issue single cover in your name.
• If your mortgage is in joint names and both of you are eligible for cover, you have the following options:
  
  • you can take out single cover in your name and be insured for 100% of the monthly benefit provided that you are the main income earner. The restriction relating to main income earner will be waived if both parties to the mortgage wish to be insured for 100% of the monthly benefit by taking out two separate policies; or,
    
  • you can take out split cover and you will both be insured for a percentage of the monthly benefit. If you make a claim, we will divide your monthly benefit in the same percentage as the normal income of each person at the commencement of the claim.

5. Free cover for new borrowers

6. Free cover for existing borrowers

Transferring cover from another insurer

8. The eligibility requirements of the policy

• you are at least 18 and under 65;
  
• you live and work in the UK;
  
• you are taking out the policy to protect the mortgage on the private residential property you live in; and
  
• you agree to keep to the policy conditions.

You are not eligible for cover under the policy if:

• you are aware of any circumstances that may result in you becoming unemployed;
  
• your work is of a casual, temporary or seasonal nature;
  
• you work for a temporary employment agency;
  
• unemployment is a regular feature of your particular job; or
  
• you are currently disabled. This clause does not apply if you are on maternity leave.

9. The waiting period under the policy

10. When the policy pays out for unemployment

• you are unemployed and you are registered as available for work (unless you are exempt) at an employment office (or equivalent) in the UK; and
  
• you can provide independent evidence that you are actively looking for permanent work.

We will consider the first day of your unemployment to be the day you are first registered as unemployed and available for work (unless you are exempt) at an employment office (or equivalent) in the UK and receiving the appropriate national insurance credits. If you are receiving payment in lieu of notice the waiting period will not begin until your payment in lieu of notice period has ended.

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