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Can I still get mortgage protection cover?

It’s fair to say that the insurance protection sector has gone through a degree of change over the last few months due to the coronavirus pandemic. As we have highlighted on numerous occasions the industry has also been quick to react to safeguard existing policyholders and likewise, a large percentage of providers are actively looking to ensure they still provide financial products to new entrants into the market through both existing (while slightly modified) policies and also providing new offerings.

We recently covered concerns from both customers and providers related to income protection (find out more here) and how the market was reacting. The main points featured highlighted the changes the market is currently going through but also that through enhancing underwriting protocol a large number of providers were continuing to provide new policy offerings. However, given the current ongoing circumstances around coronavirus, not all providers were continuing to provide new applicants with income protection policies and as such, there has been a noticeable reduction in income protection products across the market.

So what does this mean for mortgage cover given that this is one of the biggest elements of insurance within the income protection market? At Simply Cover we acknowledge that the ability to protect your mortgage payments thus being able to protect one’s home is a vital priority especially during these testing times where there is a heightened degree of uncertainty. It is for this reason we wanted to make it clear that there are still providers offering income protection products. Whether you’re looking for help via a comparison service or via a specialist broker like Simply Cover there are four main types of cover that fall under income protection that can be bought individually or as a packaged together. These include mortgage cover, redundancy protection,  accident and sickness cover, and loan protection.

Why is mortgage cover important? While a life insurance policy can protect your property in the event of death it won’t protect your home in the event of a job loss as such now more than ever people are turning to income protection to secure their ongoing monthly mortgage commitments. Therefore the ability to have access to protection is understandably a key concern that we at Simply Cover are discussing with new and existing customers daily. While it’s true that the amount of mortgage cover via income protection options has reduced it is however far from gone altogether with numerous providers continuing to offer protection to new applicants.

Currently within the sector, while a number of providers have restricted or withdrew income protection policies there is also a significant number of providers who are constantly reviewing their products while continuing to offer new policies. For instance Aegon, Royal London, Vitality, and AIG are accepting new cases based on the applicant’s full salary. Further to this Aviva for instance are taking new applicants based on annual earnings with 80% of the salary being paid if the policyholder becomes incapacitated while on reduced earning. There are also companies making offerings to meet circumstances around furlough for instance Shepherds Friendly is basing cover on 80% of a salary claimed while on furlough. Further to this, companies are making additional compensation to assist customers both new and existing through this testing time. In a recent article, we further highlighted the offering of payment holidays to vulnerable customers (find out more here). The above instances highlight a brief summary of how just a small number of providers are currently meeting the ever-changing situation, but ultimately should you require the mortgage cover element or multiple elements of income protection there are providers from across the market fulfilling applicant’s needs.

At Simply Cover we are continuing to assist customers to find mortgage cover, daily we are helping new applicants to protect their mortgage by reviewing what is open to them from across the market both via income protection and also life protection products. This is where the power of personal underwriting can play a pivotal role over the algorithm-based quoting engines of comparison sites as we personally undertake all underwriting with access to the latest live policy provider offerings and updates.

Should you require further information about mortgage cover via income protection, what you are eligible for or to review the live market offerings bespoke to you then don’t hesitate to contact Simply Cover today:  0800 048 9248.

All information provided within this article was accurate at the date of publish (27/05/2020)