Sickness Insurance, Redundancy Insurance Cover

By: Frank Lenny Financial Services  05/12/2011
Keywords: financial services, Mortgage

Frank Lenny Financial Services hold two agencies for Sickness and Redundancy cover with Assurant and Allianz. Below is a detailed description of the cover offered;


Mortgage Payment Protection insurance is designed to help you meet your monthly residential mortgage repayments in the event you are unable to work due to accident, sickness, hospitalisation, critical illness or unemployment subject to certain terms and conditions being met.

You can select the monthly benefit you need, to cover your residental mortgage payment. This is the lesser of:

  • 100% of your mortgage payment;
  • 65% of your net monthly income; or
  • €1500

If an accident, sickness or unemployment prevents you from working for longer than the waiting period (30 consecutive days), or if you are hospitalised and prevented from working for longer than the waiting period (3 consecutive days), we will pay 1/30th of the monthly benefit for each continuous day you are unable to work after the waiting period. 

Waiting Period

There is a waiting period of 150 days for new mortgages. For existing mortgages the waiting period is 180 days (however there is a nil exclusion period if the existing policy has been in place for 6 months and transferred on a like for like cover basis).

At the time you are certified unfit for work or register as unemployed you must:

  • have been in full-time employment or self-employment for at least the time specified in your policy;
  • satisfy the definition of accident, sickness or unemployment set out in the glossary;
  • for accident and sickness, be under regular care and attendance of your doctor;
  • not be in receipt of a monthly benefit for any other benefit;
  • for unemployment, have permanently ceased trading, if you are self employed.

The main instances where you will not be covered for accident, sickness or hospitalisation claims which result from:

  • any medical condition, injury, illness, disease, sickness or related condition which you knew about (or ought reasonably to have known about) at the policy start date; or for which you sought or received advice, treatment or counselling from any doctor during the 24 months immediately before the start date;
  • This exclusion does not apply if you have been continuously insured and you have been symptom free and have not consulted a doctor or received treatment for the condition in the 24 months immediately prior to your claim;
  • Self-inflicted injury, being under the influence of, alcohol or drugs;
  • Any condition of a mental or nervous origin, unless certified and under the continuing care of a consultant psychiatrist; and
  • Backache or related conditions unless there is supporting medical evidence. Such evidence may be a report from an appropriate consultant or from your doctor, in either case an MRI, CT scan, or equivalent, may be required.

The main instances where you will not be covered for unemployment are:

  • any condition excluded under the accident, sickness and hospitalisation exclusions;
  • if at the start date you knew you would become unemployed or you had reason to believe that you might become unemployed;
  • unemployment which you become aware of or which occurs within the exclusion period;
  • if your work was seasonal, casual or temporary.

The monthly benefit will be paid to you monthly in arrears provided you meet the policy terms and conditions.

The cost of Mortgage Repayment Protection is €9.75 per €100 of mortgage repayment.


Allianz Payment Protection 

With payment protection insurance from Allianz, if you are unable to work for more than 30 days due to an accident, illness, hospilisation or involuntary unemployment, your mortgage repayment may be paid for up to 12 months (subject to you continuing to be unable to work durin gthis 12 month period).

The maximum monthly amount payable is €3,000 or 65% of the gross monthly income of the claimant(s), whichever is less.

Features and Benefits

As an employee, you qualify for accident, illness, hospilisation and involuntary unemployment benefit.

  • As a state employee or self employed person, you qualify for accident, illness and hospilisation benefit.
  • Flexibility to avail of single or joint cover.
  • No medical examination is required at application stage.
  • One simple appilcation form to secure cover.
  • Up to 120% of your monthly mortgage repayment protected.
  • Right to withdrawal within 14 days of cover.
  • Claims will be settled fairly and promptly.

Who can apply?

  • You are over 18 and under 60 years of age.
  • You are currently in full time employment or self employed and have been continously for the past six months.
  • You are living and ordinarily resident in the Republic of Ireland.
  • There is a mortgage on your property which is occupied solely by you and your family as a permanent residence with no business carried out there.
  • You don't know of any impending redundancy, unemployment or impending medical treatment or advice.
  • You are currently in good health and have not suffered from any serious illness over the past 12 months.
  • If you are a Switch Borrower your existing repayment protection has been in force (claims free) for at least 12 months prior to switching to this policy.

Policy Conditions

  • Mortgage payment protection for new borrowers must be put in place within 90 days of your mortgaeg drawdown date.
  • If you are a switch borrower and already and have an existing mortgage payment protection policy, you can apply at any time.
  • For redundancy claims you must be receiving benefits from the state and registered with an approved employment agency.

Main Exclusions

  • The first 30 days of cover are exempt from redundancy and disability claims.
  • The first 10 days of cover are exempt from hospilisation claims.
  • Voluntary redundancy, seasonal or end of fixed term contract are exempt.
  • New borrower with any impending unemployment known about or that occurs within 90 days of taking out the policy.
  • Switch borrower with any impending unemployment known about or that occurs before the start date of this insurance.
  • Pregnancy related conditions.
  • Claims arising from AIDS/HIV related illness.
  • Self inflicted injuries, alcohol or drug related.
  • Pre existing conditions that you knew about within 12 months before the start date of the cover.
  • Cover ceases for persons at retirement and after you reach the age of 65.
  • War, riot, civil commotion, radiation.

The information in this article was current at 02 Dec 2011

Keywords: financial services, Mortgage

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