Scottish Equitable Protect has introduced individual mortgage protection, a critical illness plan that is aimed at homeowners.
The plan gives homeowners the flexibility to pick and choose benefits from a range that includes critical illness and life cover. There are also additional benefits such as waiver of premium and total and permanent disability benefit.
This means that first time buyers can take out the barest minimum of cover and add more benefits when they move to a bigger house or start a family. It can be used by borrowers who don't have any life or critical illness cover or those who are looking to add to their existing cover.
The plan covers 25 conditions ranging from Alzheimer's disease to third degree burns and is available on a single or joint life basis. Permanent Insurance has a similar product called critical illness mortgage, which covers four more conditions than the Scottish Equitable plan. Premiums for both plans are based on age. sex smoking status and the amount of mortgage cover required.
A 30 year old non-smoking male requiring critical illness cover on a £80,000 mortgage over a 25 year term would pay £16.96 a month with Scottish Equitable and £13.96 a month with Permanent Insurance.