Pays homeowners, unable to work due to accident or illness, a monthly benefit to cover mortgage repayments
A new income protection offering from MetLife is now available via a select panel of intermediaries that covers some or all mortgage payments - up to a maximum of £1,500 per month - for up to 12 or 24 months.
Known as MortgageSafe and available to new or old homeowners, there are three levels of cover to choose from.
There is no medical underwriting for policyholders looking for accident cover only, while those who want to protect against both accident and illness will be required to undertake a simple underwriting process formed of five health questions. Applications do not require GP reports, income or financial underwriting or family history.
According to MetLife, claims are straightforward too. If an individual is unable to work for at least four weeks they can claim benefit paid back to day one. Plus payments can also be made to the lender directly, if preferred.
Likely to be attractive to the self-employed and those who work in the gig economy with a mortgage, policyholders can also choose to add optional child cover onto their policy for an additional £3 per month.
Rich Horner, head of individual protection at MetLife, said: "Despite a challenging year for most, 2020 saw many people finally climbing a rung on the housing ladder. The stamp duty holiday announced by the Chancellor allowed many to accelerate their dream of buying their first home or moving into a new one. And in the midst of a third national lockdown, it's unclear whether or not the payment holidays will be extended beyond 31 March 2021.
"Achieving the right level of protection is different for everyone and cover should be provided based on current needs. There simply isn't a one size fits all approach, which is why financial advisers are so invaluable. We believe MortgageSafe fits a great customer need and slots in alongside other protection policies to piece together the ‘protection puzzle'. Bringing this simple, easy to understand proposition to market increases the options available to customers, gives advisers more opportunities and we believe will help further growth in the income protection market."
While currently only available via a select panel of intermediaries, MetLife expects to roll MortgageSafe out to the wider market later this year.
