Paymentshield has unveiled a refreshed mortgage protection product that reintroduces unemployment cover alongside accident and sickness benefits.
The update comes as the general insurance provider partners with AmTrust Specialty Limited, a subsidiary of global insurer AmTrust International.
The transfer of Paymentshield’s mortgage and income protection book to AmTrust has now completed, with Uris Group acting as the claims administrator.
AmTrust International, part of A- rated AmTrust Financial Services, is one of the largest underwriters of niche insurance products.
STREAMLINING
In addition to broader coverage, Paymentshield has streamlined the adviser quote process, aiming to make it easier for intermediaries to match clients with appropriate protection.
The company said the changes were in direct response to growing economic uncertainty, including rising employer redundancy intentions and low levels of household savings.
Figures from Finder show that 16% of UK adults have no savings at all, while nearly half hold £1,000 or less. One in four has no more than £200. With average monthly mortgage repayments now estimated at £1,428, Paymentshield warns that many households could face financial strain within weeks of losing an income.
The enhanced policy provides cover for up to 24 months if the policyholder is unable to work due to accident, sickness or unemployment, or if they must take on caring responsibilities.
Customers can also opt to increase their monthly benefit by up to 33% to help meet other financial commitments such as utility bills or loan repayments, with a maximum benefit of £3,000 or 75% of gross monthly income.
Louise Pengelly, director of proposition at Paymentshield, said: “We recognise the uncertainty that many households are facing due to ongoing economic headwinds. Despite this, there are few providers out there actively offering these products to consumers.
“As experts with over 30 years’ experience in mortgage protection, we felt it was imperative to fill this gap, equip advisers with a greater suite of products to discuss with their clients, and deliver peace of mind to those who need it most.”
The updated product is now available to new customers, with existing policyholders transferred to the new insurer with no break in cover.
