Its aims

To provide:

• You with your chosen benefit when you are unable to work due to sickness or an accident for the term of your mortgage or you return to work.
• A wide choice of when benefits will start based on the date from which you are unable to work.

Your commitment

• To pay a regular monthly premium for the whole term of the Plan.
• To tell us all relevant medical and non-medical information about yourself when completing your application form and when making a claim under the plan.
• To tell us if your mortgage ends before the date given in your application.

Risks

• If you stop paying premiums under this plan your plan will end.
• Benefits received from this Plan may affect your entitlement to any other benefit.
• If you provide information which is deliberately false the plan will be invalid.

Questions and answers

What is the Mortgage Payment Protection Plan?

The Shepherds Mortgage Payment Protection Plan is designed to help you cover your mortgage payments and other associated household costs in the event that you suffer an accident or sickness and you are unable to work.

The minimum time the Plan can run for is five years the maximum depends on your mortgage term. On the anniversary and every 5th anniversary thereafter, the premium will change to match the relevant age band.

Who can have this Plan?

You can have this Plan if:

• You are between the ages of 18-59.
• You are a UK resident at the beginning of the Plan.
• You have a mortgage that is a UK regulated mortgage on your main residence.
• Youare accepted by us after our underwriting.

You cannot have the plan if:

• You are unemployed or not recognised as self-employed by HM Revenue and Customs.
• You are not named on the Mortgage agreement.
• You are currently unable to work due to Accident or Sickness.
• Your mortgage payments are in arrears.

What are the benefits of this Plan?

The minimum initial benefit is £200 a month and the maximum is £2000 a month.

You can have an amount of benefit that will cover up to 100% of your monthly mortgage payments if you are ill or have an accident and are unable to work.

Alternatively, you may choose to increase your level of benefit up to 150% of those payments to include additional bills.

If there are 2 or more parties to the mortgage agreement they may each take out a plan as long as the total monthly benefit to both does not exceed 150% of the mortgage payment.

How long do I have to wait before I receive any benefit?

The benefit will be paid after your chosen waiting period. A waiting period is the length of time from when you become ill or have an accident, to the date when we start to pay sickness benefit.

You can choose the waiting period that you want at the start of the plan, and you can change it at any time (but not if you are claiming Mortgage Payment Protection benefits) - 4 weeks, 8 weeks, 13 weeks, 26 weeks and 52 weeks.

We will stop making payments on the date that: -

• You return to work.
• You fail to meet any of the policy Terms or Conditions.
• The Plan or your mortgage ends.

The payment of Premiums

The premium is payable monthly in advance by Direct Debit.

Premiums depend on the level of cover and your age. (See rate table for details)

Premiums are fixed for 5 years and then increase every 5th year.

Is waiver of premium included?

Waiver of premium is included and covers you so that you do not have to continue paying premiums from when your benefit starts.

What happens if I stop paying my premiums?

If you do not pay your premiums we will not pay the sickness benefit.

If your bank returns a direct-debit payment, we will only try and claim the premium once more. If the payment is not accepted cover will cease and the Plan will be cancelled.

Once I have applied what if I change my mind?

You can cancel your plan within 30 days of receiving your plan documents. If you cancel within this period, we will automatically refund any premiums you have paid.

You can cancel any time after the first 30 days but you will not be refunded any premiums you have paid.

If you wish to cancel the policy please write to our Head Office address.

Exclusions

There are certain circumstances where we will not pay out on a claim. We will not pay benefit for an injury or illness caused by War, an invasion, hostilities, cosmetic surgery for non-medical reasons or by taking part in dangerous activities and fail to use the correct equipment or undertake and utilise the appropriate training. For a full list please see our Terms and Conditions.

What about tax?

Benefits are payable free of tax, provided they are being used to replace income lost through illness or accident.

Please remember that Taxation rules can be changed by HM Revenue and Customs in the future.

How to make a claim

As soon as you think you may need to make a claim please contact us by telephone on 0161 428 1212. The claims department will explain the claims process and send you a Claim Form.

At the time of the claim we will need evidence of your current mortgage and original medical certificate. A delay in sending these documents to us could result in a delay to the payment of benefits.

Please make sure that you send in medical certificates within seven days of the last one running out.

You must pay the premium during the waiting period. When the benefit starts we will not claim direct debits until your medical certificate expires.

How much will any advice cost?

Your financial adviser (if you have one) will give you details about the cost of advice. The amount will depend on how much you are paying each month and the length of your plan.

Where can I find out more?

Before your plan starts we will send you the full terms and conditions. These explain how the plan works. If you would like to see these terms and conditions before you apply, please contact us:
Phone: 0161 428 1212
Fax: 0161 428 3666
e-mail: info@shepherdsfriendly.co.uk 
Web: www.shepherds.co.uk