Mortgage protection insurance - good/bad?

boredmarriedwithkids

Hello,

Anyone got any thoughts on these?....Whilst I'm not under any threat of redundancy (that I know of) I'm trying to be a bit proactive and maybe taking out a policy to cover any eventualities before I get caught short because in the present climate anything is possible.

Just curious if anyone has got any good/bad experience and is it worth planning for this....it is affordable...within reason.

I have checked several of the compare sites and they don't seem to unreasonable in the monthly premium, I guess its the benefit being offered that is most important.

Any thoughts peeps?........>Tks

dunstonh

Personally I am not a fan of them. They are mass sold because they are simple to sell and work to a lower regulatory requirement for the better income protection product called permanent health insurance.

PHI is far superior to MPPI except it doesnt include unemployment cover. However, you can get standalone unemployment cover (without accident/sickness) if you want it.

You need to decide if you want cover that pays out in the event of a claim or pay a lower premium for cover that may not meed your needs.

boredmarriedwithkids

dunstonh...thanks for the reponse.....I think in this case I am only looking for a standalone unemployment cover policy...I get a reasonable accident policy through work which is payable for 72 weeks at approx 70% of annual salary, after 26 weeks on full pay.

THe only remaining issue is the sickness, I'm in good health, but that is not to say I wont be.....on reflection I'm really only looking at the short term given the current economic climate.

dunstonh

I get a reasonable accident policy through work which is payable for 72 weeks at approx 70% of annual salary, after 26 weeks on full pay.

Check the cost of that against a PHI which would kick in after 26 weeks and payout up until retirement. If the job is clerical you may not find there is much difference.