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Going Critical!
“When it comes to life the critical thing is whether you take things for granted or take them with gratitude.” G.K. Chesterton
At Metfriendly, we offer our members the opportunity to “Save; Invest; Protect”. Although we mainly write savings business, many of our members turn to us to provide good value mortgage protection cover.
Mortgage business is picking up with a recovery in the housing market – and renewed innovation from lenders. We are making some changes to our mortgage protection product, and this includes level term insurance (whether or not intended to cover an interest only mortgage). We have been liaising with mortgage adviser, Debbie McKnight of “Bright Advice”, who has helped many of our members with their mortgages.
The job provides ample life cover for most purposes, so we concentrate on mortgage protection. It is here that most people want additional cover, and frequently they want to include their partner. It has always been cheaper to take out a joint life policy than 2 single life ones – but the policy only pays out once. We encourage members to insure their life and their partners under separate contracts so that, if the worst happens, the surviving member still has cover. Under our new simple pricing basis, the additional cost for separate policies is just £1 per month.
We are publishing standard trust deeds, which can be used in conjunction with our life and mortgage protection policies – at no extra cost. Putting a single life policy into trust has 2 main advantages if there is a claim. First, you do not need to wait for probate. Second, the amount paid falls outside your estate – which means it cannot be brought into any inheritance tax calculation.
Finally, we are going to be offering critical illness cover. If this is chosen, then our policies will pay out on the earlier of death or diagnosis of a critical illness. The conditions we cover are the main critical illnesses such as cancer, coronary by-pass, heart attack and stroke – a full list is available on our website.
Critical illness cover is significantly more expensive than life cover. An alternative way to protect yourself is to take out income protection as well as mortgage protection cover. We do offer income protection to serving officers and staff, but cannot include partners.
Many members come to us when they move or re-mortgage, but it is often a good idea to test out whether your current cover is too expensive. Under mortgage protection policies, the sum insured goes down each year, and a new policy for the current sum required to pay off the mortgage can well be cheaper. It also gives you the opportunity to review your requirements – perhaps taking 2 separate policies, each under trust. And you can add critical illness (or income protection) if you need it!
Stuart Bell
Chief Executive at metfriendly
‘metfriendly’ is the trading name of Metropolitan Police Friendly Society Limited
For more infromation
Tel: 01689 891454
Metphone: 28192
