With Metfriendly’s Mortgage Protection plan you can ensure that what remains of your mortgage will be paid so your loved ones will not be burdened.
This plan is designed for homeowners with a repayment mortgage.
- ensure the outstanding balance on your mortgage will be taken care of in the event of your death or if you are diagnosed with a specified critical illness
- small monthly premium
- premiums are paid by salary deduction if you’re in the Police Service
- you can choose the term of your plan
- you can choose the initial benefit (the ‘sum assured’), the benefit payable will decrease year on year.
How does the plan work?
- A Mortgage Protection Plan is also known as “Decreasing Term Insurance”. You pay us regular monthly premiums during the term of the plan. The premiums do not vary during the term of the plan.
- The benefit you receive reduces in line with the capital outstanding under a repayment mortgage. There is no benefit if you survive to the end of the term.
- So at the beginning of the term the entire outstanding mortgage balance is covered. As the mortgage is repaid the benefit to be paid out decreases. This has the effect of making the Mortgage Protection Plan far cheaper than other forms of life insurance.
- There is no surrender value – if you stop paying premiums the cover will simply cease.
- If critical illness cover is included in the plan, the benefit will be paid if an insured person is diagnosed with a defined critical illness (see FAQs). There is then no further benefit paid on death. If critical illness cover is not included in the plan, then the full benefit will only be paid on death, or if an insured person is diagnosed with a terminal illness with death expected within 12 months (see FAQs).
How do I apply?
- Illustration Request – You should begin by obtaining a personal illustration detailing the cover you require and estimated cost. You can request an online illustration or telephone us and we will send you written illustrations showing all the options available to you. Once you are happy that the cover and term are satisfactory and have chosen which options you require, you should complete an application form.
- Application Form – When completing the application from ensure that you identify clearly who is to be covered and for what amounts, and return it to us. Please ensure all questions are fully answered to the best of your knowledge and belief. You should not assume that we will write to your doctor – it is your responsibility to fill in the application form correctly. We may require further medical evidence (at our expense) – we will let you know if this is the case. Once we have fully considered your application, we will contact you with confirmation of the premium required and any special terms, and ask you when you want the plan to start.
When WILL the plan pay out?
- If only one person is covered by the plan: on death during the term of the plan.
- If two people are covered by the plan: on the death of the first to die if this occurs during the term of the plan.
- If critical illness cover is included in the plan: on diagnosis of a critical illness.
- If critical illness cover is not included in the plan: on diagnosis of a terminal illness (with less than 12 months to live), but not in the final 24 months of the term of the plan.
- After any payment the plan immediately expires and cover ceases.
When will the plan NOT pay out?
- If you do not disclose relevant information on your application form.
- If you do not tell us of any of the following changes that occur after completing your application form but before cover starts:
- Your health
- Starting smoking
- Use of drugs or alcohol
- Hazardous pastimes
- If death occurs due to suicide during the first year of the plan.
- If you cancel the plan or if any premiums are more than 30 days overdue (60 days for payroll deductions).
What is a Critical Illness?
Critical Illness Cover
The complete list of conditions we cover is set out below.
| Cancer | excluding less advanced cases |
| Coronary artery by-pass grafts | with surgery to divide the breastbone |
| Heart attack | of specified severity |
| HIV infection | caught from a blood transfusion, a physical assault or in the execution of your duty |
| Kidney failure | requiring dialysis |
| Major organ transplant | |
| Stroke | resulting in permanent symptoms |
| Terminal illness | with death expected within 12 months |
| Third degree burns | covering 20% of the body’s surface area |
These headings are only a guide to what is covered. The full definitions of the illnesses covered and the circumstances in which you can claim are given in the policy document, (click the relevant button on the right). These typically use medical terms to describe the illnesses but in some cases the cover may be limited. For example: Some types of cancer are not covered, and to make a claim for some illnesses, you need to have permanent symptoms.
You are in paid employment with a UK police service and are medically retired, except where due to a mental or nervous condition.
Is there any other information available that can help me decide which Life Insurance Policy to buy?
The policy document gives full details of the cover provided and includes all the definitions, exclusions, terms and conditions. Specimen copies are available here Single Life Mortgage Protection (NO Critical Illness), Single Life Mortgage Protection (WITH Critical Illness), Joint Life Mortgage Protection should you wish to see them before making your decision. Additionally, the Money Advice Service™ provides useful financial information on its website moneyadviceservice.org.uk. However, if you are still unsure as to the suitability of this plan, and wish to obtain personal advice, you should contact an independent financial adviser.You are in paid employment with a UK police service and are medically retired, except where due to a mental or nervous condition.
How much does the plan cost?
Your monthly premium depends on the amount of cover you choose, how long the plan is to run for (its “term”), and whether critical illness cover is included. It also depends on your personal circumstances – your age, health, sex, and whether or not you smoke.
Example Illustrations
The tables below show example monthly premiums for our Mortgage Protection Plan (Decreasing Term Assurance) – a plan with reducing benefits. The premiums are based on a sum assured of £100,000 over 25 years and assume you are in good health at the time of commencement and are accepted at standard rates.
Death Benefit only – no Critical Illness Cover
| Age Next Birthday | Decreasing Term Assurance | |
| Non-Smoker | Smoker | |
| 20 | £4.04 | £5.13 |
| 25 | £4.51 | £6.18 |
| 30 | £5.29 | £8.08 |
| 35 | £6.57 | £11.46 |
| 40 | £8.46 | £16.94 |
| 45 | £11.56 | £26.49 |
| 50 | £17.29 | £43.74 |
Death Benefit PLUS Critical Illness Cover
| Age Next Birthday | Decreasing Term Assurance | |
| Non-Smoker | Smoker | |
| 20 | £10.14 | £11.72 |
| 25 | £13.22 | £16.15 |
| 30 | £18.06 | £23.77 |
| 35 | £26.04 | £37.26 |
What are the charges?
The premium includes all costs for administration, underwriting and claims.
How do I pay for it?
If you are a member of the Metropolitan or City of London Police Services the premiums are paid by salary deduction, otherwise payments are made by direct debit.
What about tax?
Critical illness benefit (if applicable) would be paid to you, and if this remains in your possession at your death, it will form part of your estate and be subject to Inheritance Tax. If you give any of this benefit away as a gift, and do not survive for at least seven years after making the gift, then on your death your estate may be charged some level of Inheritance Tax on those gifts, although there are some reliefs which may apply.
Any death benefit would be paid into your estate, and therefore may be subject to inheritance tax. Assets left to your legal partner (or to charity) are not normally subject to Inheritance Tax.
If the plan is placed in Trust, or assigned (to a lender or another individual), it may not form part of your estate. Please see our basic guide to trusts for details of the Trust Deed we have available for our life insurance plans. Taxation treatment may be subject to future changes in legislation.
What if I change my mind or decide to cancel?
- You can cancel for a full refund within 30 days of receiving your policy documents. Simply contact our Member Services team on 01689 891454 or email [email protected]
- If you wish to stop or cancel your plan after this, our friendly Member Services team will be able to help.
How do I contact you?
Metfriendly, Central Court, Knoll Rise, Orpington, BR6 0JA
Phone: 01689 891454
Email: [email protected]
