The mortgage payment protection market has seen a new entrant with the arrival of Goodfellows online subsidiary insureyourincome.co.uk.
The package is available for most members of the working population, although applicants must be working for a minimum of 20 hours a week. They must also have been working continuously for the previous six months.
There are three options available. The first is unemployment cover, the second is disability cover and the third is combined unemployment and disability cover.
All three options pay benefits over one or two years, with the maximum monthly benefit set at £2,500 or 75 per cent of gross monthly income, whichever is the lower.
Premiums vary depending on the option selected. They are £3 for every £100 of monthly benefit for two years of unemployment and disability cover and £5 for every £100 of monthly benefit for combined unemployment and disability cover.
insureyourincome.co.uk is similar to the standard easi protect plan recently introduced by The Exchange. Both plans are only available on the internet. Standard easi protect offers accident, sickness and unemployment cover, with just one benefit level with cover at £4.99 for every £100 of monthly cover. Benefits can be paid for a maximum of one year only. But insureyourincome.co.uk is more flexible as it has three cover options. It also offers the choice of benefits paid over one or two years.
Goodfellows created an online service for a number of reasons. The company claims that an online service aids distribution as the information on the package is more easily accessible. It also claims that by using a secure server, the site is safer and faster than using the post. However this does limit it to people with access to a computer.