Prospectus and Summary of Cover Mortgage Payment Protection. Underwritten by Pinnacle Insurance plc

Transcription

1 Prospectus and Summary of Cover Mortgage Payment Protection Underwritten by Pinnacle Insurance plc

2 Protecting your mortgage Now is the time to think about securing your home and the comfort it gives you, should your personal circumstances take a turn for the worse. No matter how secure you might currently feel in your work, or with your health, sadly things can change all too rapidly. Yet, you still have your mortgage to pay. Consider Would the Government help me if the worst happened? Don t rely on it. Income Support benefit rules may mean that you are not entitled to any help from the state towards your mortgage repayments if you are unable to work due to an accident or sickness or if you become unemployed. Would my company support me? Do you know if your employer will give full sick pay if you re off work, and for how long? What sort of redundancy package is provided? The answer to these questions can come as a nasty shock - and often when it s too late to do anything about it! For example, even if you are eligible, you won t receive any help with your mortgage repayments for the first 13 weeks and after then, only on the interest of your loan (up to 200,000). Security when you need it most Most of us are likely to suffer one of life s knocks at some time over the term of a mortgage, but now there s an easy way to soften the blow of losing your income. Mortgage Payment Protection offers cover for your mortgage payments in the event of accident, sickness or unemployment - meaning one less worry during a stressful time. Full Accident, Sickness and Unemployment cover will help to provide peace of mind - knowing that your mortgage payments will be met, if the unexpected should happen. However, the flexible nature of our cover allows you to protect your home and your lifestyle in the most effective way possible. For example, we can offer Accident and Sickness only cover if this better suits your circumstances. Cardif Pinnacle's Mortgage Payment Protection insurance product has been awarded the maximum 5 Star Rating for quality of cover by Defaqto, an independent market research company. 1

3 How much cover should I have? You can cover just your basic monthly mortgage payments, or you can choose to extend your cover to include other additional expenses, such as insurance premiums, utility bills or any other regular outgoings. The limit for the additional expenses is up to 50% of your monthly mortgage payment and there is an overall limit of 2,000. As an illustration Mortgage Payments 600 Utility Bills 150 Other Regular Outgoings 50 Household Insurance 25 Life Assurance 25 Monthly Benefit required 850 So, how does Mortgage Payment Protection work? In the event of falling ill, having an accident or losing your job, Mortgage Payment Protection will: start paying after you have been off work for the duration of the wait period as shown in your schedule; pay the maximum length of monthly benefits shown in the schedule for any claim. Benefits on Mortgage Payment Protection are paid monthly in arrears. The benefit is calculated daily as 1/30 th of the monthly benefit, starting after the wait period. There is no payment for the wait period of any claim unless you choose Back to Day One cover. Protection for both you and your partner If you have a joint mortgage, you can even choose to have the benefits divided between you and your partner. If one of you needs to claim, the policy will pay a percentage of the total benefit stated on your application form. Payment Premiums are payable monthly by Direct Debit. If you have chosen Back to Day One cover then you will receive a full monthly benefit payment at the end of the first 30 days of a claim. Thereafter, benefit will be calculated as shown above. Extra hospitalisation cover If you take out full Accident, Sickness and Unemployment cover or Accident and Sickness cover you automatically receive additional hospitalisation cover. This means that, if you are hospitalised as an in-patient for three days or more, we will start to pay your claim from day four. This is not standard in many other policies. 2

4 Am I eligible for cover? You can take our Mortgage Payment Protection if: you are over 18 and under 65; you work and live in the UK; you are making, or are about to start making payments under a mortgage agreement for a property to be occupied as your main residence; you are up to date with your mortgage payments; you have been for the last six months, and currently are, in permanent paid employment or self-employed for 16 hours per week. Fixed term contract workers must have been continuously employed by the same employer for at least a year and, in addition, their contract needs to have been renewed at least once in the past or they need to have been employed by the same employer for at least two years; you comply with other eligibility requirements which may apply at the time of your application and will be explained at that time. These requirements will not affect you if you are already covered under this policy. If the above applies to you simply ask us for a quote and we can set up the policy with your mortgage. Claims Support Programme If you have an unemployment claim we will provide you with a Job Finder Guide and access to our Claims Support website ( which will help you in your job search. You may also be offered access to a CV rewriting service, a CD ROM, employment workshops and telephone support service. If you have an accident or sickness claim we will provide you with our Claimant Health Guide. You will also have access to our Claims Support website ( which will assist you with health updates and general information on your condition. So, don t leave your family s security to chance... For a small daily cost, Mortgage Payment Protection cover might just turn out to be your smartest purchase! 3

5 Summary of cover Important - you should read this This policy summary does not contain the full terms and conditions of the contract, which can be found in the policy document GP Pinnacle Insurance plc is the underwriter and claims administration provider of this policy. Cardif Pinnacle is a trading style of Pinnacle Insurance plc. Pinnacle Insurance plc is authorised and regulated by the Financial Services Authority. Wessex Group is the administration provider for policy queries, amendments and cancellations. Policy Type MPPI is designed to protect your mortgage repayments if you are off work as a result of accident, sickness, unemployment or hospitalisation. Eligibility You will be eligible for cover under this policy, if at the start date you: have a mortgage agreement for property you occupy as your home; work and have the right to live in the United Kingdom (including working for a UK registered company in other European Union countries for not more than 180 days a year); are in employment or self-employment and have been continuously for the last 6 months at least 16 hours each week; are at least 18 and less than 65 years old; and comply with other eligibility requirements* which may apply at the time of your application and will be explained at that time. These requirements will not affect you if you are already covered under this policy. *This may include extending the length of time you must have been working for, prior to the start date, to beyond that stated in the 3 rd bullet point above. MPPI provides two levels of cover - Back to Day One and Standard. Your schedule will specify the type and level of cover you have selected. The following tables summarise the cover available to you. TABLE 1 Accident and Sickness Cover Features and Benefits Significant Exclusions or Limitations Policy Reference Standard cover - if you are unable to work due to an accident or sickness for longer than the wait period as shown in your schedule, we will pay 1/30 th of your monthly benefit for each further day that you are still unable to work. Back to Day One cover - if you are unable to work due to an accident or sickness for longer than 30 consecutive days, we will pay one monthly benefit after the first 30 days of accident or sickness. Thereafter, we will pay 1/30 th of your monthly benefit for each further day you are unable to work due to an accident or sickness. The maximum we will pay each month is 2,000. We will treat periods of accident or sickness caused by the same, underlying or directly attributable medical condition, separated by less than 3 months, as one continuous period of accident or sickness. Accident and Sickness Cover TABLE 2 Hospitalisation Cover Features and Benefits Significant Exclusions or Limitations Policy Reference If at the start of your accident or sickness you are hospitalised as an in-patient for longer than 3 consecutive days, we will pay 1/30 th of your monthly benefit for each further day that you are still unable to work. The maximum we will pay each month is 2,000. Hospitalisation Cover 4

6 TABLE 3 Hospitalisation Cover Features and Benefits Significant Exclusions or Limitations Policy Reference If at the start of your accident or sickness you are hospitalised as an in-patient for longer than 3 consecutive days, we will pay 1/30 th of your monthly benefit for each further day that you are still unable to work. The maximum we will pay each month is 2,000. Hospitalisation Cover TABLE 4 Additional Cover and Joint Mortgages Features and Benefits Significant Exclusions or Limitations Policy Reference You can cover just your basic monthly mortgage payments, or you can choose to extend your cover to include other additional expenses such as insurance premiums, utility bills or any other regular outgoings. The limit for the additional expenses is up to 50% of your monthly mortgage payment. The maximum benefit we will pay each month is 2,000. If two people are on the schedule as the insured, the conditions of this policy will apply to each person separately and each person will only be covered for the amount shown in the schedule. Settling a claim TABLE 5 General Exclusions - applicable to all covers Policy Reference Any claim that arises as a result of a medical condition that you knew about, or ought reasonably to have known about, is excluded. Any claim that arises from a chronic condition, self-inflicted injury, drug and alcohol abuse is excluded. Claims that arise from backache, stress, nervous and mental conditions are excluded unless you are under the care of an appropriate medical specialist. What we do not insure TABLE 6 Important Information - applicable to all covers Policy Reference PREMIUMS The amount you pay for cover may change during the time you have this policy. This may be because of: changes you request to your cover, such as changing your monthly benefit; or changes to our expected future costs. We will only change your premium for this reason where there is a change to the specific factors we have set out in your policy, and that change results in our expected future costs being higher or lower than assumed when the premium was set. This may include changes to our expected future claims costs due to changes in economic conditions such as unemployment rates. We will review your premium at least annually and you will be given at least 30 days written notice of any alteration to the premium rates under this policy unless the change is due to legislative, tax or regulatory requirements. We may review your premium more frequently than annually if it becomes necessary due to significant changes in any of the specific factors referred to above. Except where your premium is changed due to legislative, tax or regulatory requirements, the minimum period between consecutive changes will be 180 days. As a result of the premium review, your monthly premium may go up, stay the same or go down, and there is no limit to the amount of any change. If a review results in an increase to your premium and you do not wish to pay the increase you can contact us to discuss your options or cancel. Premiums 5

7 TABLE 6 Important Information - applicable to all covers TERMS AND CONDITIONS We may vary or waive the terms and conditions of this policy. This may be to: vary the cover provided under this policy because of changes to our expected future costs. We will only change your premium for this reason where there is a change to the specific factors we have set out under the Premiums Section of your policy, and that change results in our expected future costs being higher or lower than assumed when the premium was set. This may include changes to our expected future claims costs due to changes in economic conditions such as unemployment rates; improve your cover; comply with any applicable laws or regulations; reflect any changes to taxation; or correct any typographical or formatting errors that may occur. You will be given at least 30 days written notice of any alteration to the terms and conditions of cover under this policy unless the change is due to legislative, tax or regulatory requirements. Except where the terms and conditions of cover under this policy are changed due to legislative, tax or regulatory changes, the minimum period between consecutive changes will be 180 days. Such changes may have the effect of increasing or reducing the cover previously provided under this policy. If you do not wish to continue your cover you can contact us to discuss your options or cancel. OUR RIGHT TO CANCEL THE POLICY We may cancel your insurance cover immediately where there is evidence of dishonest or exaggerated behaviour or where you have misrepresented or failed to disclose something at the time of application which would have caused us to decline you for cover. We may cancel your insurance cover by giving not less than 90 days written notice. We will only do this in the circumstances set out under Our Right to Cancel Section of your policy. YOUR RIGHT TO CANCEL THE POLICY You may cancel this cover within 30 days of the start date. If you have not made a claim under this policy your policy will be cancelled and any premium(s) paid will be refunded. If you cancel your cover after this period, no refund will be payable. To cancel, please contact the Wessex Group, Jewry House, Jewry Street, Winchester, Hampshire SO23 8RZ. Telephone PERIOD OF INSURANCE The cover and your right to any monthly benefit will end if you permanently retire, reach 65 years, pay off your mortgage or the mortgage agreement ends, you or we cancel this insurance or you miss any premium payment, whichever happens first. You should advise us if you permanently retire before you are 65 so that we may cancel the policy. You should review your cover under this policy on a regular basis to ensure that you are adequately covered and that this policy continues to meet your needs. CLAIMS Please contact: Cardif Pinnacle, Claims Department PO Box 563, Borehamwood, Hertfordshire WD6 2YQ Telephone On-line: For all claims, proof will be required from your employer, your doctor and/or the Department for Work and Pensions Jobcentre Plus (or equivalent government department in Northern Ireland, the Channel Islands or a European Member State). COMPLAINTS While it is always our intention to provide a first class standard of service, if you do have any concerns regarding your insurance cover, please address them to the Wessex Group, Jewry House, Jewry Street, Winchester, Hampshire SO23 8RZ. Telephone: Or for claims contact the Customer Relations Manager, PO Box 563, Borehamwood, Hertfordshire WD6 2YQ. Telephone: If we cannot resolve your complaint to your satisfaction you may be entitled to complain to the Financial Ombudsman Service. COMPENSATION Pinnacle Insurance plc is covered by the Financial Services Compensation Scheme (FSCS). If Pinnacle Insurance plc is unable to meet its liabilities you may be entitled to compensation from the FSCS. Further information is available from their website: Policy Reference Terms and conditions Our right to cancel Cooling-off period Duration of cover Making a claim Your service guarantee Policy conditions 6

8 KF2932(A)v2-17/12/2009 This insurance is underwritten by Pinnacle Insurance plc, a member of the Financial Ombudsman Service (FOS). Pinnacle Insurance plc is authorised and regulated by the Financial Services Authority (FSA). Pinnacle Insurance plc Pinnacle House, A1 Barnet Way, Borehamwood Hertfordshire WD6 2XX Registered in England and Wales Number Cardif Pinnacle is a trading style of Pinnacle Insurance plc.