Mortgage Payment Protection

For most people, a mortgage is the biggest and most important outgoing they have every month. Despite this, relatively few make provision in case they are unable to meet their repayments.

Mortgage payment protection insurance (MPPI) is a valuable safety net. But for it to be effective, it must be appropriate for the customer’s needs and sold in an informed and responsible manner. Assurant Solutions recognised that a different approach was needed and the result is a revolutionary insurance product that can be tailored to the customers' needs.

Assurant Solutions – Your Partner in Payment Protection Insurance

Assurant Solutions has developed a ground breaking and highly flexible mortgage payment protection insurance product, which was launched after conducting research into consumer needs, market developments, distribution channels, the views of the regulator and consumer groups.

We offer our corporate partners bespoke solutions in MPPI. By working together we can create a unique proposition for your customers. And as your business develops, we can launch new products to fit with your strategy.

By selecting Assurant Solutions, you can be confident that your customers' needs are a priority.

Unrivalled flexibility and choice

We can offer payment protection insurance for mortgage, income or combined mortgage with income protection, offering a wide range of options. Simplicity and clarity are key to making our product easy to use, as the adviser guides the customer through their options to facilitate a compliant sales process.

From a consumer perspective, the four key product attributes are:

• Suitable – the product can be tailored, so customers can be confident the cover is right for their needs.
• Flexible – it offers variety and choice and can be revised as appropriate to the circumstances.
• Portable – it is not linked to a specific lender’s mortgage, meaning cover can be transferred as necessary.
• Affordable – the customer only pays for the cover they need – and can claim on.

Suitability is at the heart of the product

Advisers can help their customers select from three main product options, as appropriate to their needs:

• Mortgage Payment Protection Only
• Mortgage Payment Protection and Income Protection
• Income Protection Only

Mortgage Payment Protection

This policy covers the mortgage repayment amount and some related costs. It allows a customer to cover up to 125% of their mortgage repayment. This extra amount is recommended to cover associated mortgage and property related expenses such as home insurance, utility bills or life insurance premiums.

Mortgage Payment Protection and Income Protection

This combined policy option covers both the mortgage repayment as well as insuring the customer’s income, usually the lesser of a percentage of the customer’s salary and offers a fixed maximum monthly benefit.

Income Protection

This policy works in the same way as MPPI but the benefits relate to your customers’ earnings, not just mortgage payments. It is designed for customers who already have and are satisfied with any existing insurance provision covering their mortgage repayments.

Additional cover

Incapacity (Accident & Sickness)
This cover pays out a monthly benefit equal to that selected by the customer. There are pre-existing medical conditions and certain qualifying periods which customers must be made aware of up front, details of which can be found in the policy document.

Involuntary Unemployment
This cover pays the selected monthly benefit for the chosen duration. Self employed and contract workers can also be insured.

Life
This pays a fixed amount in the event of death, and can be calculated as 24 times the mothly benefit. This is not term life assurance, but an optional additional benefit the customer may choose.

Hospitalisation
Payable if the policyholder is hospitalised for at least seven days.

Return to work benefit
If the policyholder returns to work on reduced hours, we will pay the difference of a percentage of a monthly salary before the claim and the new salary.

Benefit Payment Options

Back to Day One (Retrospective) or Standard (Daily Excess)

Different customers have different requirements and our MPPI product is designed to cater to this. Some customers may prefer to have their benefit payments backdated to the first day they were off work. If a customer does not require immediate payment, but is happy to receive payment from a date in the future, then the excess option (of 30, 60, 90 days etc) should be chosen, reducing the cost to the customer. This is also appropriate where some customers may have additional coverage from an employer for example.

Additional feature

Claims Payment beyond the end-date
A further feature, and one which is especially relevant to customers who select the single premium option, is the event of a valid claim close to the expiry date of the policy. In this event, the benefits will be payable for the full duration of the claim.

Technology that puts you in charge

Our technology is available to all corporate partners and has been developed in consultation with mortgage advisers. It allows the user to steer the customer through the various options. Rather than just creating an on-screen application form, the software is an integral part of the mortgage and insurance sales process.

The system takes a step-by-step approach and allows the adviser to drill down into the finer detail for each individual customer. Our software is also designed to recognise any benefits customers may already have through their salary package or other insurance covers, so there will be no duplication whilst allowing flexibility in areas such as benefit duration and claim deferment.

Benefits to advisers

• Provides a unique sales tool, unrivalled in the industry
• Specifically designed to help you increase sales and generate additional revenue
• Integrates within your sales process

Benefits to customers

• Enables them to obtain the right cover at the right price to suit their individual needs
• Gives them access to a product that can be tailored for them
• Policy terms and conditions can be provided in plain English

Treating Customers Fairly

The Financial Services Authority principles of treating the customer fairly have been central to the design of this product range from Assurant Solutions. The customer is able to purchase a policy or combination of policies that suits their individual circumstances and budget, rather than having to having to accept an off-the-shelf product.

If you want to offer your customers the option of flexible mortgage payment protection insurance talk to Assurant Solutions and find out about the advantages we bring to our corporate partners and their customers.