View more on these topics

Berkley frees up MPPI

Berkely Alexander has introduced freesafe, a mortgage payment protection insurance (MPPI) product that provides six months&#39 free cover for new borrowers.

Freesafe allows policyholders to choose the type of cover they require. They can choose unemployment only cover or accident sickness and unemployment cover, with a waiting period of 30 or 60 days. They can also decide how long the benefit is to be paid, from a choice of either 12 months or 24 months.

Premiums start at £3 per £100 of benefit, for which policyholders get accident, sickness and unemployment, or unemployment-only cover with a 60-day waiting period and a benefit period of 12 months. Premiums are higher for accident sickness and unemployment cover, if the waiting period is shorter and the benefit period is longer.

The highest premium is £6.10 per £100 of benefit, which provides accident, sickness and unemployment cover with a 30-day waiting period and a benefit period of 24 months. For all options, cover is back to day one and the maximum benefit is £1,500 a month or 65 per cent of salary, whichever is lower.

Berkeley Alexander&#39s product has lower premiums than mortgage care from The Mortgage Business, which provides cover from £3.75 per £100 of benefit. However, the maximum waiting period is 45 days with The Mortgage Business, compared to 60 days with Berkely Alexander. This explains why the lowest level of cover is cheaper with Berkley Alexander.

Unemployment-only back to day one cover, with a 30 day waiting period and a 12 month benefit period, would cost £3.25 per £100 of benefit with Berkeley Alexander and £4.68 with The Mortgage Business.

Recommended

Legal & General cuts bonuses

Legal & General has cut its annual bonus rates by up to 25 per cent on life policies and maturity payouts by more than 15 per cent. Annual bonuses on life policies are down to 1.5 per cent from 2 per cent in 2000 on the sum assured, and to 2.75 per cent from 3.50 […]

Britannia says 2001 was best in its history

Britannia Building Society says last year was the most successful in its history, with profits more than doubling to £129m from £62m in 2000.Results show the society&#39s net mortgage lending reached a record £1.8bn compared with £800m in 2000.Britannia&#39s subsidiaries, including specialist mortgage lenders Verso and Platform Home Loans, increased profits by 39 per cent […]

First National restructures business

First National Bank is restructuring its business, integrating its motor and retail units that will be brought together as one intermediary-facing operation.First National Motor Finance managing director Keith Horlock will head this unit under the title of Group New Business Director.First National managing director Philip George says: “The new business structure has been carefully planned […]

Safeway – 3 Year Stepped Rate Bond

Thursday, 7 March 2002 Type: High interest account Minimum-maximum investment: £1,000-£2m Interest rates: Year one 4% gross a year, year two 5% gross a year, year three 6.5% gross a year Term: Three years Offer period: Until further notice Withdrawal penalties: 180 days&#39 loss of interest on amount withdrawn Tel: 0800 995995

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment