Accident, Sickness and Unemployment

This type of insurance covers the mortgage payments for a maximum of two years but can also include other mortgage related costs. The percentage of the other mortgage cost depends upon the insurance provider.

You can exclude unemployment cover if the ensure wishes but if required unemployment aspect only covers involuntary redundancy.

If a claim is made payments will start after a deferred period normally 28 days, benefits are tax free, but provider by an employer it will be treated as a taxable benefit in kind if you are earning more than £8,500.

Exclusions and restrictions

If the ensure knew of any redundancy before the cover was taken out, the cover will not stand.A person may have to be in employment for a minimum period of time before they can take out this policy and for employment cover, no claim will be considered for as long as 6 months after the policy is accepted and started.

For the self employed people additional requirements are requested before the claimant can be successful.