Percentage of cover for mortgage jars is determined by the allocation of cover you have chosen. That is to say, for jointly named parties, you can split the cover evenly or protect either party.
ASU cover can be increased to 125% of the monthly benefit, providing extra help with mortgage-related expenses (e.g. buildings and contents insurance premiums).
Cover options can be updated later by contacting Pinnacle Insurance plc once your policy is in place.
The options for percentage and allocation cover are shown below:
| Cover option |
Joint/Single |
| 125% |
Single |
| 62.5% for each applicant |
Joint |
| 100% |
Single |
| 50% for each applicant |
Joint |
Example:
John and Jane apply for a joint mortgage. Jane is the main income earner in their household and their regular mortgage payment is £400 per month.
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If they decide to take ASU cover with an allocation of 125% single cover in Jane’s sole name, in the event of
Jane being unable to work because of a disability (ie, accident or sickness) or unemployment,
the ASU monthly benefit payable would be £500 (i.e. the regular mortgage payment and an additional 25% to help with mortgage-related expenses).
If John was unable to work instead of Jane, no payment would be made under the ASU policy.
-
If they decide to take ASU cover with an allocation of 125% joint cover for both John and Jane, in the event of either John or Jane being
unable to work because of a disability (ie, accident or sickness) or unemployment, the ASU monthly benefit payable would be £250
(i.e. the regular mortgage payment and an additional 25% to help with mortgage-related expenses allocated equally to either party).
-
If they decide to take ASU cover with an allocation of 100% joint cover for both John and Jane, in the event of either John or Jane
being unable to work because of a disability (ie, accident or sickness) or unemployment, the ASU monthly benefit payable would be £200
(i.e. the regular mortgage payment allocated equally to either party).
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