Provider: Liverpool Victoria, part of the Permanent Protection range
Product: MIMI Flexible Mortgage Protection Plan
The plan is designed to:
Pay off a residential mortgage in the UK on death or critical illness, and
To meet monthly repayments in the case of disability or redundancy.
The plan will allow cover beyond the mortgage amount, including standard income protection. It is possible to have covers in multiple combinations, and each with different terms. Policyholders can add or remove benefits and change the sum assured.
Minimum acceptable age at commencement: 18
Minimum policy term: Five years.
Maximum term (yrs): The maximum term at outset for each cover (apart from income protection) is 45 years, subject to the maximum expiry age.
Minimum sum assured: None
Maximum sum assured: None
Minimum acceptable monthly premium: There is a minimum premium of £7 per month for the plan.
Minimum acceptable annual premium: Premiums can only be paid monthly by direct debit.
Monthly policy fee: £2 for one cover, £1 for subsequent covers.
One-off setting up fee charged: No installation fee.
Life cover included automatically: No
Life cover is offered as an option: Yes
Plan available without full death cover: Yes
Level critical illness benefit: Yes
Decreasing critical illness benefit: No
Critical illness protection: The planholder may also choose at outset to include a buy-back option for which a higher premium will be payable. The buy-back option is available on both level benefit and decreasing mortgage protection benefit, but is not available on joint life cover. No exclusions apply.
Decrease term after start date: Yes
Change lives assured after start date: The policyholder can add or remove a life to or from the plan.
Waiver of premium available: Yes
Deferred periods: One, two, three and six months are available.
Guaranteed insurability options: The option to increase existing mortgage repayment cover by up to 100% of the original benefit, subject to a maximum increase of £700 a month up to a maximum age of 50.
Mortgage payment protection ' health:
Yes. The benefit will be paid of the life assured has been incapacitated for longer than the deferred period.
Mortgage payment protection ' integrated health: Benefits will be level only and no budget version is available. Benefit payments can continue to the end of the term of the cover unless a critical illness or PTD claim is paid under another element of the plan, in the circumstances described below, in which case benefit will cease and the MPP cover will be cancelled.
Unemployment cover option: Yes
Joint life second claim basis available: No
Plan can be used for keyperson protection: No
Plan can be used for partnership/shareholder protection: No
Split trust wording available: Yes
Automatic sum assured indexation available: Yes, only available on critical illness cover and income protection.
Sum assured indexation in line with RPI: Yes
Sum assured indexation in line with average earnings: No
Sum assured indexation in line with a fixed percentage: No
Permanent health insurance option: Income protection ' the benefit will be paid if the life insured has been incapacitated for longer than the deferred period.
Rehabilitation benefit and proportionate benefit is included.
Replacement/renewal option: Yes
Free cover during underwriting: Full pre-underwriting cover will be available to eligible lives who have asked for immediate cover, in respect of mortgage-related life protection and critical illness benefits only.
Waiver of premium available: Yes. Premiums will be waived if the life insured has been incapacitated longer than the deferred period. Premiums will continue to be waived as long as the life insured remains incapacitated, or (if longer) while any rehabilitation or proportionate benefits are being paid under any income protection cover for that insured under the plan.
