Eleos Life has launched an income protection policy covering redundancy alongside illness and injury as research shows almost half of homeowners mistakenly believe conventional income protection already covers job loss.
The digital provider’s new policy is aimed at homeowners in full-time employment and provides a monthly income where the policyholder cannot work because of illness or injury or is made redundant.
Research from LifeSearch and the HomeOwners Alliance earlier this year found 47% of homeowners believed income protection would pay out following redundancy.
The misconception rose to 61% among homeowners who already held income protection.
MORTGAGE SAFETY NET
The launch comes as official figures show 114,000 people were made redundant in the three months to July.
State support for homeowners can also be limited following job loss. New Style Jobseeker’s Allowance pays up to £95.55 a week for people aged 25 and over and can be claimed for up to 182 days.
Support for Mortgage Interest generally becomes available to Universal Credit claimants after three consecutive months and is provided as a loan which must ultimately be repaid with interest.
For most working-age borrowers, SMI can cover interest on up to £200,000 of mortgage borrowing, calculated using a standard rate currently set at 3.66%.
‘MOST PEOPLE ASSUME THEY ARE COVERED’
Eleos Life founder and chief executive Kiruba Eswaran said: “A homeowner who is made redundant can wait three months for any help with the mortgage, and when it comes it is a loan against their home.
“Most people assume their income protection has them covered. For job loss, it usually does not. We have built one policy that covers injury, illness and redundancy, and you can buy it on your phone.”
