Worried homeowners are being targeted by online service insureyourmortgage.co.uk.
An offshoot of Goodfellows, insureyourmortgage.co.uk offers a mortgage payment protection plan for people concerned about falling ill or being made unemployed and so being unable to pay for their mortgage.
Cover is offered to all homeowners aged between 16 and 64, as long as they have been working for at least 16 hours a day for the past six months. The maximum amount of monthly benefit is either £1,500 or 65 per cent of gross monthly income, whichever is the higher.
The premiums depend on the waiting period, with applicants able to go for either 30 or 60 days and there are three options, of unemployment cover, disability cover and combined accident and disability cover.
For the 30-day waiting period, premiums are £2.75 per £100 of monthly benefit for the first two options and £4.25 for the third option. For the 60-day period, premiums are £2.25 for the first two options and £3.75 for the third. All of the options pay benefits for up to 12 months.
insureyourmortgage.co.uk joins the increasing number of online mortgage payment protection products on the market. It is similar to the standard easi protect plan from The Exchange, which offers mortgage accident, sickness and unemployment cover. Benefits are paid out for 12 months with a premium of £4.99 for every £100 of cover. However, insureyourmortgage.co.uk is more flexible because it offers three options, compared to the single option available for standard easi protect.