You are here: Home - News -

Scottish Provident campaign aims to raise awareness of protection

by:
  • 01/04/2000
  • 0
Scottish Provident has launched a new campaign to raise awareness of the need for comprehensive mort...

Scottish Provident has launched a new campaign to raise awareness of the need for comprehensive mortgage protection in the broker market.

According to the insurer, homeowners in the UK are dangerously underinsured and, as endowments with in-built protection continue to decline, the need for cover has heightened.

Roger Edwards, product marketing manager at Scottish Provident, said: “The Faculty and Institute of Actuaries report last year was another nail in the coffin for endowments, with flexible and standard repayment mortgages becoming more popular. For these sorts of loans we need a flexible approach to protection.”

As part of its campaign, the company is running a range of seminars for intermediaries on mortgage protection and has produced sales and consumer guides with education the key message.

It has been backed by research from MORI that confirms low levels of mortgage protection and poor understanding as to what is available. The survey says 39% of borrowers do not have any form of death cover, 74% do not have critical illness cover and 84% have no disability cover.

Those that have bought cover showed little evidence of shopping around for it, with 59% opting for the covers provided by the mortgage lender.

“People are just ticking boxes on the mortgage application form,” said Edwards. “But we know that if people shop around and speak to a broker the price can be cheaper or the cover wider.”

Edwards said the campaign aims to encourage borrowers to move towards more comprehensive cover that pays out on illness, disability and unemployment rather than simply on death.

A belief in the ‘Nanny State’ was also attributed as a reason for poor penetration levels. Some 43% thought the State would contribute towards mortgage repayments in the event of unemployment. But in reality, the State will only cover interest repayments after 39 weeks.

Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Skipton ‘reluctantly’ moves to introduce charitable assignment

Skipton Building Society has become one of the final top 20 mutual societies to introduce a charitab...

Close