About Mortgage Protection Options

Its aims

The plan aims to do the following:

  To cover the outstanding amount of mortgage or other loan against the financial consequences of death, terminal illness and critical illness.

  To allow you to select different types of cover for you and/or another person to suit your individual needs.

  To provide you with the flexibility to alter the cover level and range of benefits as your protection needs change.

Your commitment

You must do the following:

  Pay the regular monthly premium by direct debit.

  Give us all the information we ask for when applying for your plan and claiming benefits.

  Tell us about any changes to the information you give us, between completing your application form and your plan starting.

  Notify us about any subsequent changes in the information given in your application, such as changes to your address.

Risk factors

The plan carries the following risks

  If you stop paying your monthly premiums your cover will end.

  Certain causes of claim are excluded. See the ‘What is not covered’ sections for each benefit.

  The plan has no cash-in value at any time.

  We may not pay a claim if the information we receive when you apply for your plan is incomplete or incorrect.

  You should review your cover regularly to ensure it continues to meet your needs.

  In some circumstances, decreasing cover may not be enough to pay off your mortgage in full; for example if your mortgage payments have not been adjusted to take into account interest rate changes, or if your mortgage interest rate averages over 12% during the term you have chosen for cover.

  For Critical Illness cover, we may review premium payments if the predicted cost of providing benefits is higher than expected. If this happens your premiums may increase.