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1. Select Product
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2. Select Amount of Benefit
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Mortgage Payment Protection
Example 1. Mortgage Payment Protection for New Borrowers and Switchers.
John and Mary are married, with two children. John earns €35,000 per year, which is €2,917 per month before tax approx. Mary works at home. Their mortgage repayments are €1,100 per month. Including insurance €1,200. John has a Mortgage Payment Protection Policy in place with another insurer for over 12 months covering him for €1,200 per month and wants to switch to save money.
There is no exclusion period, once the existing policy is over 12 months old, without claims, John can switch to the same type of cover and go on cover straight away.
John learns he is to be made involuntarily redundant. The policy will pay out €1,200 per month to John, tax free, for up to one year and he can still claim his Social Welfare entitlements of €812 per month approx.
The premium is set until the next renewal date (One year later) at which point he will be advised of the new cost for the next year.
Example 2. Mortgage Payment Protection for New Borrowers and Switchers.
Sean is single, and is about to draw down his new mortgage and is looking to protect himself against the financial threat of Involuntary Unemployment. Sean can take cover for up to 65% of his gross monthly wage (Before tax), or 120% of his mortgage repayments or €3,000 per month, which ever is lower.
Sean’s new mortgage will cost €1,000 per month.
Sean protects his mortgage payments for €1,200 per month, (120% of the mortgage repayments).
Sean has the cover live for nine months and has just been given his notice and will be made Involuntarily Redundant. The policy will pay out €1,200 per month tax free (The Maximum) for a period of up to one year. Sean is also entitled to claim Social Welfare Benefit which is paid to him.
The premium is set until the next renewal date (One year later) at which point he will be advised of the new cost for the next year.
Example 3. Mortgage Payment Protection first time cover for an existing mortgage.
Don has a mortgage for the past three years, repaying €1,800 per month. Don has noticed some friends loosing their jobs and wants to protect himself against the prospect of Involuntary Unemployment. Don has no mortgage payment protection in place and earns approx €2,500 per month after tax. Don can get cover to protect him against Accident, sickness and Involuntary unemployment up to 65% of his after tax monthly income, or 100% of the mortgage payment or €1,500, which ever is lower. As €1,500 is the lower, Don applies for this cover amount. Don should be entitled to social welfare benefits and once he has taken out a Mortgage Protection Policy over 6 months without being made aware he is going to lose his employment , will receive €1,500 a month for up to one year and now has a way of paying his mortgage for 12 months.
The premium is set until the next renewal date (One year later) at which point he will be advised of the new cost for the next year.
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