These are the 'Key Features' of the Mortgage Protection Plan
and Level Term Assurance
Why should I read this document?
The Financial Services Authority is the independent financial services regulator.
It requires us, the Metropolitan Police Friendly Society, to give you this important
information to help you decide if this product is right for you. You should read this
document carefully so that you understand what you are buying, and then keep it safe for future reference.
Its aims
- To provide the amount of cover that you choose (the "sum insured").
- To provide that cover for the period you choose (the "term" of the plan).
- To pay the full benefit if you die during the term of the plan (reducing benefit
applies to the Mortgage Protection Plan).
- If selected, to pay the full benefit if you are diagnosed with a defined
critical illness (reducing benefit applies to the Mortgage Protection Plan).
Your commitment
- You must give us all medical and other information we ask for when applying
for your plan and advise us of any material changes that occur after you complete your application
form but before cover starts.
- You must make all the regular premium payments during the term of the plan.
Risks
- If you miss any mortgage repayments, or if mortgage interest rates rise above 10%,
then there may be a shortfall in the benefit under the Mortgage Protection Plan compared to the outstanding
loan on your property.
- Benefit is only paid once under a joint life plan, on the first death so the surviving partner will
then have no cover.
