You are here: cherry > Press releases for February 2011 > Paymentshield puts 'unemployment only' back in protector

21 February 2011

Paymentshield is bucking the trend by restoring its unemployment only option on its mortgage payment protection insurance (MPPI) product. MortgageProtector will include unemployment only along with accident and sickness only and full accident, sickness and unemployment cover options from today (Monday). Paymentshield Insurance Director Neil Galjaard said: “There is a demand from brokers and from customers for this option to be made available as the economy struggles to move forward following recession – last week's official unemployment figures released by the Office of National Statistics confirm the upward trend with another 44,000 joining the dole queue in the three months to December 2010. “In partnership with our underwriters Aviva, Paymentshield has worked hard to re-introduce unemployment only cover on our MortgageProtector product to help intermediaries best serve new mortgage or re-mortgage clients that are particularly worried about the prospect of keeping up with their mortgage payments should they find themselves unemployed.” In common with other insurers in the creditor marketplace, Paymentshield withdrew the ability for customers to opt for unemployment only cover over in early 2009. This coincided with a particularly tough time for the UK economy when many firms and organisations were forced into issuing widespread redundancy notices. However, since then the British economy has not fallen off the edge of a cliff and this is a sign that providers are starting to see some stability in the market. “It's true that we are now more comfortable in offering this option to customers, but many of our competitors remain reluctant to offer this option to customers,” Galjaard added. “We have offered U only, AS only and full ASU on our IncomeShield policy from it’s launch date last August.” “There’s still a very real need for clients to protect their home from the risk of being unable to keep up with mortgage payments due to accident, sickness or redundancy and therefore an opportunity for brokers to ensure their clients have sufficient cover. Our research reveals that almost half of those surveyed have never had their finances reviewed by a professional with only 27 per cent having their finances expertly reviewed in the past two years*. “There is an obvious opportunity here for brokers to maximise their commission earnings and look after their clients' best interests at the same time.” ENDS

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