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ASU FAQs What security is there with the companies with which you deal?
Are you a broker or an insurance company?
Do I need mortgage protection cover?
What is Income Insurance designed to do?
What does Income Insurance cover me for?
Is there a limit on the amount of Income Insurance cover I can choose?
Can I apply for Income Insurance?
When will cover end?
Will I get immediate cover?
Will I get immediate cover if I transfer from another insurer?
What if I have a pre-existing medical condition?
What if I am self-employed?
What if I’m employed on a fixed term contract?
Are there any exclusions?
What if I will receive a payment in lieu of notice?
How can I pay for Income Insurance?
When can I claim?
For how long can I claim?
How do I make a claim?
Can I cancel Income Insurance if I change my mind?
What does mortgage start date mean?
What does normal monthly mortgage payment mean?
Can I take out Income insurance cover if I am borrowing from a relative?
What do I do if I have another question?
Do mortgage arrears really happen that often these days? TOP What security is there with the companies with which you deal?
All the insurers we use are either registered with the Financial Services Authority or the Lloyds Registration Council. Most are large well know companies although we do use smaller companies for niche areas of business. All insurers are authorised and regulated by the Financial Services Authority and therefore covered by the compensation schemes required by law.
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Are you a broker or an insurance company?
We are an independent intermediary. In accordance with the rules of Financial Services Authority we are authorised by each of the insurers on our panel to arrange insurance on your behalf (subject to your meeting insurers' requirements). We act for you the client, not the insurers and can therefore select the better deals from the many companies we use.
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Do I need mortgage protection cover?
Because you run the risk of losing your home if you don't keep up your mortgage payments, you may want to take out Accident Sickness & Unemployment insurance which would help you if, for example, you have an accident which means you are unable to work.
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What is Income Insurance designed to do?
Income Insurance is designed to protect your mortgage payments against the risks of loss of regular income due to involuntary unemployment and/or accident and sickness.
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What does Income Insurance cover me for?
Income Insurance covers your chosen amount of monthly benefit for up to 24 months if you are unable to work due to involuntary unemployment and/or accident and sickness.
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Is there a limit on the amount of Income Insurance cover I can choose?
The maximum claims benefit you can insure is your normal monthly mortgage payments (including related life and household premiums), plus optional cover of up to a further 25%. However, in addition, the maximum amount of cover you can choose under Income Insurance is £1500 or 65% of your gross monthly income. Some schemes will go as far as £2,500
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Can I apply for Income Insurance?
You can apply for Income Insurance if on the start date you:
• Are named on the mortgage agreement you wish to protect
• Are at least 18 and under 65 years of age and
• Are permanently resident and working within the UK, Channel Islands or Isle of Man; and
• Are actively working (i.e. not off sick) when you apply and have been for at least 6 months immediately before this time.
When will cover start?
Cover will start on the date you choose, but cannot be back dated. If however, you are currently unable to work due to an accident or sickness, cover will only commence on the day you return to work.
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When will cover end?
Cover will end in the following circumstances:
• If you die
• When you reach 65 years of age or permanently retire if earlier
• When you cancel the policy
• On the date you stop paying the premiums
• If you are no longer resident in the UK
• When your mortgage ends
• If your mortgage payments are in arrears and/or the litigation process has commenced. TOP
Will I get immediate cover?
You will get immediate cover when agreed by our office subject to the policy qualification periods shown in the summary of cover that will be sent to you and receipt of full proposal details.
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Will I get immediate cover if I transfer from another insurer?
Yes. If you transfer to Income Insurance from another insurer you will get immediate cover provided your previous Insurance had been in force for at least six months and you have never made a claim on that insurance.
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What if I have a pre-existing medical condition?
• Income Insurance will not cover pre-existing medical conditions. However, you will be entitled to benefit if you have not suffered from that condition for some time. The amount of time may vary depending on the insurer chosen. Again full details will be in the summary of cover. TOP
What if I am self-employed?
As a self-employed person, to qualify for unemployment cover you must provide evidence that your business has:
• Permanently stopped trading and/or is in the process of being wound up; or
• Has been put into the hands of a company dealing with insolvency; or
• Is a partnership which has been dissolved or is in the process of being dissolved.
Important Note – If you are employed by a family member who has control of or is in anyway connected with your employer, you will be treated as self-employed.
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What if I’m employed on a fixed term contract?
Generally, if you have been working for the same employer for at least two years on an annual contract that has been renewed at least once then you may be treated as being in permanent employment if you make an unemployment claim. If you cannot meet these conditions, you will only be eligible to claim up until the date on which your contract would have expired had it continued until the period originally intended. These terms may again vary with insurer and you should consult the policy summary to be sure.
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Are there any exclusions?
Yes – as with most policies Income Insurance has exclusions that are fully explained in the policy wording and in brief in the policy summary.
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What if I will receive a payment in lieu of notice?
If you are made redundant and receive a payment in lieu of notice you will not be entitled to receive claims benefits during this period, since you will, in effect, still be in receipt of an income. This also applies to compromise agreements.
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How can I pay for Income Insurance?
You can only pay for Income Insurance via monthly direct debit from your bank or building society.
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When can I claim?
In order to claim your unemployment or accident and sickness must last for at least 30 or 60 consecutive days and you must be outside the original start up qualification period.
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For how long can I claim?
Claims benefits for unemployment or accident and sickness are payable for a maximum of 12 or 24 months (depending on the contract chosen) or until you cease to be disabled or unemployed or you return to work should this be a lesser period.
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How do I make a claim?
Claiming under Income Insurance is simple and straightforward. If you need to claim you can contact the claims helpline, details of which will be listed in your policy documents.
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Can I cancel Income Insurance if I change my mind?
Yes, you are free to cancel your Income Insurance at any time. If you cancel within the cooling off period you should get a full refund provided you have not made a claim.
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What does mortgage start date mean?
Mortgage start date means the date the mortgage you are protecting under your Income Insurance policy first started or the date it will start if in the future.
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What does normal monthly mortgage payment mean?
This is the amount you pay each month to your mortgage lender and can include related life and household premiums if required. It is not the capital amount borrowed or currently outstanding.
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Can I take out Income insurance cover if I am borrowing from a relative?
No. To arrange cover under Income Insurance you must have a formal mortgage agreement with a recognised mortgage lender.
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What do I do if I have another question?
If you have another question please contact 1 Stop Insurance Consultants Ltd during normal office hours, Monday to Friday on 020 8648 8868. Or by email at anytime at
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Do mortgage arrears really happen that often these days?
The latest figures on arrears from the Council of Mortgage Lenders (CML) highlight the importance of having Income Protection. It foresees 130,000 mortgages in arrears of over three months by the end of the year. The CML also predicts 15,000 repossessions in both 2006 and 2007
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Important Note – It is essential that you read the certificate of insurance and policy summary to ensure that this insurance is suitable to meet your needs
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