National Friendly launches non-underwritten mortgage protection

National Friendly has launched Mortgage Protect - a new short-term income protection product designed specifically to protect customers' mortgage payments if illness or injury prevents them from working.

Available alongside an active mortgage or remortgage application, Mortgage Protect has no health or lifestyle questions at application and requires no upfront medical or financial underwriting.

Mortgage Protect provides a monthly benefit linked to customers’ mortgage payments and allows them to choose from a range of deferred and claim periods. Once the mortgage term has concluded, cover continues on a 70% of earnings basis until the policy concludes at age 68.

The product protects mortgage payments up to £2,500 per month, with an additional benefit of up to 20% of the mortgage payment available to cover wider financial needs and household costs, making a potential total monthly benefit of up to £3,000.

A guaranteed insurability option lets customers increase their cover in line with an active remortgage, without further underwriting.

Mortgage Protect offers a rehabilitation benefit of up to £1,000 to support a return to work during a claim and a death benefit of £2,500.

It also offers flexible deferred periods of 30, 60, 90 or 180 days, and claim periods of 3, 6 or 12 months, so advisers can tailor cover to a client's circumstances and budget.

Optional add-ons include fracture cover, Friendly GP+ (covering the policyholder and family members at the same address) and a basic-level dentist benefit, Friendly Dentist.

Mortgage Protect is available to customers aged 18 to 60 at outset, with cover running to age 68. Premiums are reviewable every three years.

Graham Singleton, chief executive at National Friendly, said: "A mortgage is the biggest financial commitment most people will ever make, yet it's often the least protected.

“Mortgage advice presents a natural opportunity to address the protection gap by making protection discussions simpler and more accessible for consumers. This is arguably more important than ever following the FCA’s final Pure Protection Market Study, highlighting the need for industry action to help more consumers consider their protection needs and access suitable cover.

“Mortgage Protect has been designed to make that protection conversation easier. With no health or lifestyle questions at application and a benefit built around the customer’s mortgage payment, it gives advisers another practical way to help more clients put valuable cover in place.

“For customers, that means greater financial resilience when they may need it most. For advisers, it means a more complete mortgage service and another opportunity to help close the protection gap.”