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The Facts
Will the
Government help you if you are unable to work through an accident
or sickness?
Don't count on it! If you work more than 24
hours per week or have savings of more than £8,000 you will
receive no assistance from the Government. You may be eligible for
assistance, but only after the first nine months - and only the
interest of your loan, a maxmimum of £100,000.
Self-Employed
If you were to suffer a sickness or have an accident that meant
that you could not carry out your work for a few months, ask yourself
"how would I cope".
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Do you have a workforce that can carry on while you are
incapacitated?
» Do you have savings
that would see you through a few months, if so, for how long?
then what?
» Would your partner's
income be adequate in the short term?
» What about the long
term? |
Employed
What benefits does your employer give you if you are off sick?
If you are made redundant, what do you leave your company with?
If you are not sure, or do not know - then find out now.
How to protect yourself and your
mortgage
Accident,
Sickness and Unemployment cover (ASU)
Most of us are likely to suffer one of life's knocks at some time
over the term of the mortgage, but there is an easy way to cushion
any loss of income.
The word "unemployment" means unemployment through no
fault of your own - redundancy. This cover can be for accident
and sickness only; redundancy only or accident, sickness and redundancy,
and is relatively inexpensive - meaning one less worry during a
stressful time.
It features:
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Back to day one cover after a 30 or 60 day qualification
period
» Cover
if you are self-employed, employed, company director
or contract worker
» Benefits are
paid for up to 12 months in the event of a claim
» The monthly
cover limit is £1,500 (or a sum equal to 65% of
your gross monthly income)
» Cover can
be transferred from one mortgage lender to another
» Premiums are
paid by monthly direct debit and the policy can effectively
run for the whole term of the mortgage
(irrespective
of the lender)
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Long
term Accident and Sickness cover (Permanent Health Insurance - PHI)
This is designed to provide cover for a certain
period of time, usually for the term of a mortgage or planned retirement
age. If you have to switch your job to one with a lower level
of remuneration, then there may be proportional payments made.
Deferrred periods are 4, 13, 26, 52 and sometimes 104 weeks - the
longer the deferred period, the less costly the monthly payments.
Benefits are usually expressed as a percentage of earnings less
any other disability benefits payable. All benefit payments are
tax-free.
Long-term
incapacity can have a devastating effect for your family -
you are advised not leave it to chance
Enquiries
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