MetLife has launched a new income protection policy called MortgageSafe, which offers homeowners a monthly benefit that covers mortgage repayments in the event that the policyholder is unable to work due to accident or illness.
This new protection offering, currently available via a select panel of intermediaries, covers some or all of the monthly mortgage repayments – up to a maximum of £1,500 per month – for up to 12 or 24 months.
Policyholders can choose from the three levels of cover best suited to their lifestyle, health and the cost of the mortgage repayment.
There is no medical underwriting for those looking for accident-only cover.
For those wanting to protect against both accident and illness, MortgageSafe uses a simplified underwriting process formed of five simple health questions.
Applications do not require GP reports, income or financial underwriting or family history.
If an individual is unable to work for at least four weeks they can claim benefit paid back to day one and payments can also be made to the lender directly if preferred.
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 31st 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.”
Policyholders can choose to add optional child cover onto their policy for an additional £3 per month.
MortgageSafe is currently available through a select panel of intermediaries ahead of a wider launch later this year.