FAQ About Insurance

This is sometimes known as ASU cover. It’s an insurance policy that you, as a mortgage customer can take out to protect yourself against being unable to work due to accident, sickness or unemployment. The policy will pay a monthly benefit amount that you choose to help you pay your monthly mortgage repayment and associated insurance premiums. The benefit is paid for upto a maximum of 12 months or until you return to work, whichever happens first.

This is life assurance, which you take out for an agreed period, or term. The insurance pays out a specified amount on the death of the policyholder providing it occurs within the policy term.

This refers to insurance products, which some lenders will impose as a condition of their mortgage offer. This could mean that the lender insists that accident, sickness and unemployment cover is taken out or that combined buildings and contents insurance is taken.

See Higher Lending Charge under Mortgages Section of FAQ’s