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Accident, Sickness and Unemployment Insurance is just one of a range of protection measures that should be considered at the time of arranging a mortgage transaction, in order to protect your mortgage payments and other regular outgoings in the event that you are unable to work because of illness, accident or unemployment.
Here we take a look at Accident, Sickness and Unemployment insurance, with information on how much it can cost, waiting periods, terms and conditions and how we might be able to assist you.
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So, as we've already identified, Accident, Sickness and Unemployment Insurance (or ASU for short) is just one of many forms of protection a borrower should consider when arranging a mortgage so that their mortgage payments and other regular outgoings are protected in the event of the borrower being unable to work through illness, accident or unemployment.
Let's face it, none of us know what's round the corner, and the effect that the incapacity to work, due to an accident, or illness, or job loss, can have on our family budget can be devastating! And it's worth remembering that nowadays, you're not likely to get any assistance from the State until you've been absent from work for at least nine months!
Well, for a modest monthly sum, we can arrange Accident, Sickness and Unemployment Insurance to cover you in the event of your incapacity to work. As part of our 'getting to know you' procedures, a qualified Shire Direct Mortgage Advisor will carefully examine any present arrangements you may have, determine your demands and needs, and provide you with details of the several options available to you.
It's worth bearing in mind that most ASU insurers can provide different levels of monthly premiums depending on the level of cover the customer requires, especially regarding the "waiting period". The waiting period is usually expressed as either 30, 60 or 90 days, in broad terms this is 1, 2 or 3 months.
Let's see how this works in practice. For example, if you are absent from work for a period of fifteen weeks because you've broken your leg in a car crash, the following information shows you how the "waiting period" could affect your Accident, Sickness or Unemployment claim. It also details the instances where you are likely to benefit most, taking into account cost and affordability. It's very important that you understand the cover you are receiving, the monthly premium, the benefits you will receive, and when you can expect payment.
Entitlement: Your claim will be backdated to day 1, and you would therefore be entitled to receive your insured benefit for the entire fifteen weeks.
Features: Your insured monthly benefit will be paid from day 1 of your incapacity or unemployment, once you have been absent from work for 30 qualifying waiting days.
Suggested Use: The 30 waiting day option is designed for those borrowers who do not receive sick pay from work, where loss of income could impact very quickly on the insured's financial circumstances.
Cost Comparison: This option is more expensive than the 60 or 90 day options.
Entitlement: Your claim will be backdated to day 31, and here you would be entitled to receive your insured benefit from the second month.
Features: Your insured monthly benefit will be paid from day 31 of your incapacity or unemployment, once you have been absent from work for 60 qualifying waiting days.
Suggested Use: The 60 waiting day option is useful for those borrowers who may be paid from work for the first month of illness, and who consider that they can manage financially for the first two months of being absent from work without any pay.
Cost Comparison: This option is less expensive than the 30 day option, but more expensive than the 90 day waiting period.
Entitlement: Your claim will be backdated to day 61, and here you would be entitled to receive your insured benefit from the third month.
Features: Your insured monthly benefit will be paid from day 61 of your incapacity or unemployment, once you have been absent from work for 90 qualifying waiting days.
Suggested Use: The 90 waiting day option is useful for those borrowers who may be paid from work for the first two months of illness, and who consider that they can manage financially for the first three months of being absent from work without any pay.
Cost Comparison: This option is the least expensive of all the options.
Insurance contracts have, in the past, been notorious for their "get out" clauses! That's why our qualified Mortgage Advisors here at Shire Direct are trained to carefully assess, and discuss with you, your insurance demands and needs. By doing so, we can then advise you not only of the terms and conditions, but the equally important exclusions and limitations of the contract the Advisor may recommend, and how they might affect you.
Our policy is to ensure you are provided with a product that, in the event of your incapacity to work, will provide an amount designed to pay your mortgage, and if you require, other important monthly outlay, associated costs, plus 25% for other regular expenditure and commitments.
So, hopefully we've managed to answer your Accident Sickness and Unemployment Insurance (ASU) questions. If you think we can be of further help, then why not get in touch with us, you can call us on Freephone 08000 282 281, our lines are open from 8am until 10pm - seven days a week! Or why not enquire online anytime, we'd love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
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Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
