British Money director, Alexander Burgess, says Universal Cover is ‘revolutionary’; it offers three months free cover, no excess or exclusion period, a discrimination-free premium of £5 for every £100 of cover (regardless of age, occupation, smoking habits or medial history) and accepts claims following the onset of a wide range of conditions.
The cover extension is in response to so few financial protection options being made available to and taken up by borrowers. Industry figures suggest around only 4% of people with mortgages would be able to pay their bills in the event of a lost income and there are increasing calls for the Financial Conduct Authority to close this protection gap by ensuring financially-vulnerable consumers are protected.
Burgess believes this move will help bridge that protection gap:
“My in-house research found less than half, 46%, of UK lenders discuss or offer financial support mechanisms with borrowers, so it’s no surprise to find the take-up so low. Certainly the mis-selling debacle hasn’t helped, but unlike previous PPI policies, Universal Cover is designed to pay claims.
“It’s non-discriminatory, covers the self-employed, contract workers and those working full-time, and our immediate payout provision with no exclusion periods reduces the likelihood of debts building up.”
The Protect Association Chairman, Steve Devine, agrees:
“I know of no other policy which automatically makes payments from the day you lose your job or that has such inclusive terms and conditions. This will go some way in re-building the credibility of providers.”
