Mortgage payment protection

lottycobb

Hi

I saw an advert on this site for mortgage protection insurance, so i thought i would get a quote as it sounded very reasonable and with the current financial crisis i wanted to protect us!

I took out the insurance on the 13th August 2008 and on the 28th August 2008 my husband was made redundant! I was obviously still panicing as I am pregnant but felt reassured as i had made sure we were covered!

My husband called the insurance company (Payment Shield) and they sent the forms, so we started collating all the required information.

I sent it all off and we then received a letter saying that we were not coved due to a 90 period. When we were sent the original paperwork it said we were covered from 13th August 2008! but what were we covered for???

So now we have to find the mortgage payment and my husband is on JSA and I am self employed! its impossible!

I just think why were we paying for the insurance? when you take car insurance out there is not a stipulation saying that there is a 90 day exclusion period, whats the difference? we were not to know about the redundancy!

Please can someone give me some advice?

Thanks

whu

Sorry to hear this-unfortunately I understand from speaking to people who are looking to get such a policy that the 90 day period before you can claim is fairly standard

koexelek

Yes, most lenders have this rule.. I'm sure the case in question is perfectly genuine, but the way they look at it,is if you claim within the first three months, they think you had a pretty good idea redundancy was on the cards.

OshayAway

In fact some have an exclusion period as long as 120 days and others just 60 days. If you transfer from one policy to another, the replacement cover will often waive the initial exclusion period that normally applies from the inception date.

iamesbo

Well at least you had not paid in much, you could well have been paying in for a long time and then when you needed it they would find some excuse not to payout.
If the employer gives a reason other than reduncany they won't payout, happened to me once, I was unfairly dismissed (in my opinion) and accepted a small settlement not to take them to court, they still would not payout. (Several other had taken them to court). However when I told them I had got another job they did cough up.
Maybe they were hoping I would continue with the policy - no chance!!
You won't get anything out of them so energies are best invested in finding a new job, those policies are not worth much, if there is any indication you thought you might lose your job they won't pay up, and if you didn't think you might lose your job you probably woud not have taken it out anyway, I wouldn't have!!
I just hope your husband can find work again soon. (sorry about the signiture, not really appropiate here I guess)

_Andy_

90 days is standard and with good reason. If you took the time to read your original documentation it will be stated in there.

payless

lottycobb wrote: »

Hi

I saw an advert on this site for mortgage protection insurance, so i thought i would get a quote as it sounded very reasonable and with the current financial crisis i wanted to protect us!

I took out the insurance on the 13th August 2008 and on the 28th August 2008 my husband was made redundant! I was obviously still panicing as I am pregnant but felt reassured as i had made sure we were covered!

My husband called the insurance company (Payment Shield) and they sent the forms, so we started collating all the required information.

I sent it all off and we then received a letter saying that we were not coved due to a 90 period. When we were sent the original paperwork it said we were covered from 13th August 2008! but what were we covered for???

So now we have to find the mortgage payment and my husband is on JSA and I am self employed! its impossible!

I just think why were we paying for the insurance? when you take car insurance out there is not a stipulation saying that there is a 90 day exclusion period, whats the difference? we were not to know about the redundancy!

Please can someone give me some advice?

Thanks

sorry you did not get what you expected, but this is a great post

1. This site says it ad free - but you clearly believe you saw an ad ( or was it a recommendation or just a best buy table ....... )

2. The ad likely put you through to a non advisory process- which maybe whilst slightly cheaper than speaking to an advisor ( hence why its on a money saving site) BUT you were unable of the exclusions ( which are fairly standard practice.. but why should you know) that any adviser should have clarified pre-sale.