More than 50% of mortgage payment protection insurance (MPPI) claimants cancel all but essential insurance policies when they have been unemployed for more than four months, a Berkeley Alexander survey has found. The study interviewed 1,000 claimants.
Berkeley Alexander is now encouraging brokers to avoid this loss of business by selling income protection policies with MPPI products.
These offer tax-free benefits of up to 75% of gross earnings to all clients who become unemployed for more than 30 days.
Berkeley Alexander's managing director, Ted York said: “Unemployment income protection provides brokers with a highly relevant discussion topic for clients and will provide a very useful springboard for the sale of other, more lucrative, products.”