New insurance scheme gives peace of mind to those dependent on maintenance payments

May 4, 2011 - PRLog -- There could be many reasons why payments can’t be made – including redundancy, business failure, ill health or even death and sometimes a deliberate decision not to support the ex-partner.

With rising unemployment and redundancies increasing, a couple from Suffolk has spotted a niche in the market and launched a unique new type of income protection scheme that insures against the loss of maintenance payments. Called “New Start”, and provided through their company Maintenance Assist, the policy also offers legal support should a former spouse stop paying through wilful default. This is especially important with cut backs in Legal Aid and proposed changes to the way the Child Support Agency operates. “New Start” also provides a free legal advice helpline.

Henry Glasse, who was a Lloyds underwriter for 26 years, explains: “Losing maintenance payments can be incredibly stressful and poverty following divorce is a real problem. We know of some cases where people have even considered suicide because of the situation they have been left in. We spotted a gap in the market for this type of insurance and while it’s our business – at the same time we are so pleased to be in a position to help people and give them peace of mind.

“We also believe that taking out this policy results in greater equality between the former partners and minimises dependancy.  We know of a case where a woman has run up £9,000 in legal fees on her credit card trying to get her ex-husband to pay the agreed maintenance for her and their two children even though there was a legally binding consent order in place. She even ended up in hospital because of the stress of not knowing how she would make ends meet.”

Maintenance Assist, which has recently been authorised by the Financial Service Authority, is the only company currently offering this type of insurance.  Founders Henry and Pam Glasse believe that with the Government encouraging people to make private arrangements for child maintenance, rather than going through the Child Support Agency, their service could be just what people will be looking for.

Henry added: “Unfortunately, as with any insurance, you have to plan for the worst case scenario. With relationships, you just don’t know what is around the corner. Many of the women we’ve been speaking to, while researching some of the issues, said they had no idea their marriages would break up and could never have predicted that their ex-husbands could default on their maintenance payments with a legally binding consent order in place.”

New Start policy holders pay a monthly insurance premium depending on the length and level of cover they require. The service is only available to people with a legally binding consent order in place.

Maintenance Assist specialises in offering financial solutions for people who have reached a major turning point in their lives and is confident that their products will give the reassurance and security needed to enable customers to go forward on a positive footing.

ENDS

For further information, case studies or interview requests telephone Suzi Christie on 01435 830031 or e-mail suzi@blueberry-pr.co.uk.

Note to Editors:

Useful background articles http://m.guardian.co.uk/society/2011/jan/13/fees-child-ma...

Research has recently been carried out into the effects of losing maintenance payments or the ex-partner potentially defaulting. Below are four case studies you might find of interest.

Although only a snapshot, the research gave us some interesting results.

100% of those surveyed say problems related to maintenance payments had caused them stress, 37% said it had caused a strain on their relationship with their ex. A similar number said it had caused depression. A quarter said they can’t face talking to their ex and half felt that their children are suffering. Most shocking was the fact that several people said they had felt suicidal because of the problems.

When asked what their biggest worry was regarding maintenance payments, the respondents cited their ex spouse’s circumstances changing.

A third of respondents said that they would only be able to survive for a matter of days if maintenance payments stopped and a quarter said weeks. 41% said that their children would be the ones to suffer most if payments stopped.

One respondent said that through the CSA she was receiving £5 a week maintenance from her ex-husband as her husband had left his job. He says openly that he won’t try to find another job to avoid paying maintenance “as it’s not worth it”. Others have had problems with the CSA delaying payments for up to 12 weeks.