British Money, the firm behind the newly-launched protection policy Universal Cover, has extended its customer criteria.
It is now giving free and immediate cover to all borrowers taking out a personal loan or finance agreement as well as those with a new mortgage or re-mortgaging their properties.
Universal Cover offers three months free cover, no excess or exclusion period, a discrimination-free premium of £5 for every £100 of cover (regardless of age, occupation, smoking habits or medial history) and accepts claims following the onset of a wide range of conditions.
British Money director, Alexander Burgess, believes this move will help bridge the ‘protection gap’. He said: “My in-house research found less than half, 46%, of UK lenders discuss or offer financial support mechanisms with borrowers, so it’s no surprise to find the take-up so low. Certainly the mis-selling debacle hasn’t helped, but unlike previous PPI policies, Universal Cover is designed to pay claims.
“It’s non-discriminatory, covers the self-employed, contract workers and those working full-time, and our immediate payout provision with no exclusion periods reduces the likelihood of debts building up.”
Steve Devine, chairman of the Protect Association, said: “I know of no other policy which automatically makes payments from the day you lose your job or that has such inclusive terms and conditions. This will go some way in re-building the credibility of providers.”