How do your customers sleep at night?

The facts:
Worryingly, just 60% of mortgage borrowers hold one of the four main types of private insurance policy, (critical illness 40%, MPPI 37%, personal health 20%, and unemployment 12%) only 16% of borrowers have cover for both sickness and unemployment, and often only one adult in the household is covered.

While mortgages account for 85% of consumer borrowing, MPPI represents just 17% of consumer spend on PPI.5 This low figure could be down to an unjustifiably negative impression of PPI by the media, indifference from intermediaries who are disheartened by seemingly burdonsomeregulations and also consumer inertia and confusion.

If customers fall behind with their mortgage payments and are unable to repay the debt, they could end up losing their home. The Council of Mortgage Lenders encourages all mortgage borrowers to take out independent Mortgage Payment Protection Insurance (MPPI), which Paymentshield provides for both employed and self-employed customers.

At Paymentshield, we provide you with a range of cover options. Customers can choose the amount of cover they need to protect their monthly mortgage payment, and may increase this cover by taking out 25% additional benefit to cover related insurance premiums. For successful claims we then pay out a fixed monthly benefit for up to 24 months in the event of an accident, sickness or unemployment.

The cost of protecting against the very real possibility of being unable to work is low, while the benefits are substantially high. It makes sense, then, to discuss the range of MPPI options with every customer who takes out a mortgage.