Unemployment Benefit

For any type of accident, sickness or unemployment insurance quote call on of our advisers on 0845 365 0030 quoting ref WS6.
I want a quote to cover my income only, and I don't have a mortgage.
I want a quote to cover my mortgage and related expenses.
I want a quote to cover my rent and related expenses.
I want a quote to cover a loan.
I'm confused and need advice.
I want more than £2500 per month benefit.

Unemployment Benefit

You may find that the Unemployment Benefit paid in the UK is inadequate to cover your monthly outgoings. If this is the case you might wish to take out additional cover against Accident, Sickness, Disability or Unemployment.

You can insure your income against loss of earnings due to unemployment. Cover is available up to £2,500 pounds per month, and is available to anyone in continuous employment between the ages of 18 and 64.

State Benefits/Statistics and Facts

If you found that you were unable to work due to an illness or accident there is some State Benefit that is available, but it is likely to be a long way short of what you'll need. Whilst we appreciate that finding your way through the various state benefits available can be a minefield you may wish to check the information available on the following websites.

www.direct.gov.uk
www.hmrc.gov.uk

Should you have a serious accident or illness and can no longer work, you are entitled to the following:
For the first 28 weeks:

• If employed, either benefits as per your company scheme or Statutory Sick Pay.
• If self-employed, short-term Incapacity Benefit at the lower rate.

For the next 29-52 weeks:

• Basically the same as above subject to individual circumstances.

For 52 weeks plus:

• £76.45per week; plus
• Possible extra Incapacity Benefit dependant on individual circumstances:
• Your partner is aged 60 or over, or an adult cares for your children (the amount you get depends on how long you have been sick); or
• You have children - Child Tax Credit. This is claimed from and administered by the Inland Revenue.

Income Support (IS) is a Social Security benefit to help people on low incomes. Categories of people who might be able to claim IS include those aged 60 or over, people bringing up children on their own, those who are too ill or disabled to work, or people who give up work to become carers. You cannot claim IS if you work 16 hours or more per week, or your partner works 24 hours or more, or if you have savings of over £8,000.

If you qualify for IS, then there are some limited arrangements in place to help meet your mortgage interest, provided that the purpose of the mortgage was for the purchase of your home or for work carried out to maintain the property's fitness for occupation. There is an upper limit of £100,000 on the size of mortgage which IS will cover - although if your mortgage is larger than this, you may still be able to receive assistance on the first £100,000. Restrictions can be imposed if your housing costs are considered to be excessive. In addition to mortgage interest, IS may also cover ground rent or certain service charges, but it will not cover the capital part of your mortgage payments or the premiums on an endowment policy. IS for mortgage interest is normally paid direct to your mortgage lender and credited to your mortgage account every four weeks.

New rules came into effect on 2 October 1995 concerning help with mortgages for those on IS or Job Seekers Allowance and they depend on when you took out your mortgage:

• If you took out your current mortgage BEFORE 2 October 1995 then, no help is given with housing costs for the first eight weeks followed by 50% of eligible interest for the next 18 weeks and 100% eligible interest thereafter. The Benefits Agency will pay interest at a standard rate, which may be higher, or lower, than the rate you actually have to pay.
• If you took out your current mortgage on or AFTER 2 October 1995 then you will receive no assistance with your mortgage interest for the first 39 weeks of a claim; after that period the full amount of your eligible mortgage interest (again subject to the £100,000 loan limit) will be paid (at the standard rate). However, if you re-mortgage with the same lender after 2 October you will be treated as if your mortgage was already in existence before this date (see above paragraph).

Ask yourself, how could you manage to pay your mortgage and other outgoings for up to 9 months?

Mortgage payment protection insurance is one way to ensure that if you were unable to work due to an accident or sickness, then in the short term you would have the financial security of being able to pay your bills and keep your home.

Failure to have in place adequate protection for your mortgage payments is such a serious issue that if you decide not to take out a plan, then both your adviser and mortgage lender will require you to sign a disclaimer to the effect that you have decided to take this course of action, despite advice to the contrary.

Sometimes it pays to take advice if you want to know more about the benefits of each individual plan.

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