Bristol & West is offering a range of exclusive protection products designed by Eagle Star, to run alongside its mortgage range.
The new additions consist of two versions of mortgage protection: a level term assurance for interest only mortgages, and a decreasing term assurance for repayment mortgages. There is also a guaranteed protection plan and flexible protection plan.
Both mortgage protection plans are execution only and have guaranteed premiums for the life of the mortgage.
The guaranteed protection plans and the flexible protection plan are available via IFA's. Guaranteed protection has guaranteed premiums but flexible protection has renewable premiums.
Although the premiums on mortgage protection and the guaranteed savings plan are guaranteed, the amount of cover cannot be changed in the event of mortgage increases. Instead, another policy will have to be taken out to cover the difference. This will make mortgage protection very inflexible for many people.
Based on £100,000 of level term life cover, terminal illness and critical illness cover for a non-smoking male aged 30 next birthday, mortgage protection costs £31.23 a month. This compares to self assurance from Scottish Provident which, on the same criteria, costs £24.08 a month.