Mortgage Payment Protection Insurance 9 February 2004 at 5:28PM in Mortgages & endowments 37 replies 9.7K views

MSE_Martin

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westernpromise

These premia don't resemble what I'm paying...I'm with Nationwide and my MPPI cam bundled with the mortgage. It costs £54 a month for £1,600 of benefit, i.e if the other supplier charges pro-rate then if it's £30 for £800 it must be £60 for £1,600?

EMcG

The wife & I have protection insurance for £600 - however it should be pointed out that it doesn't payout this.

To work out your payment they look at the total wages coming in - let's say £2000 pcm - they then say what percentage of this was being brought in by the person unable to work - let's say £1000 pcm. That's 50% so they'll pay out 50% of £600 = £300 pcm.

Just a warning to those who think they'll get the full amount that they're covered for - you won't.

payless

Western Promise

Is you plan just unemployment or just disability rather than covering both

westernpromise

It's ASU with CGU.

At the time I took out the mortgage I couldn't get ASU at all, anywhere, owing to where I was working (going through a high profile implosion). Online sources quoted a limit of £1500 to the benefit anyway.

So I was ecstatic to get a £1600 monthly benefit for free for a year and at a reasonable premium thereafter.

payless

think we have had this discussion before
So assume you only have Unemployment cover
Whereas premium's Martin is quoting is fuller ASU,

(if you have full ASU at £54 then - yes thats good, but not the product / price they now offer)

Its free so thats great- but after the free 12m its not that cheap, NatWide website gives the following info
£1600 cover
Type Of Cover 12 Month Claim Benefit Period
(which has a 30 day excess period)
Accident, Sickness and Unemployment £79.80
Accident and Sickness Only £41.33
Unemployment Only £54.26

System

I've been with Pinnacle for 6 months now. Is only about £8 for £450 cover. I used to be with PaymentShield when they offered the free 6 month cover, but ended it when they charged around £15 for £450 cover.

westernpromise

think we have had this discussion before
So assume you only have Unemployment cover
Whereas premium's Martin is quoting is fuller ASU,

(if you have full ASU at £54 then - yes thats good, but not the product / price they now offer)

Its free so thats great- but after the free 12m its not that cheap, NatWide website gives the following info
£1600 cover
Type Of Cover 12 Month Claim Benefit Period
(which has a 30 day excess period)
Accident, Sickness and Unemployment £79.80
Accident and Sickness Only £41.33
Unemployment Only £54.26

The £54.26 looks like what I pay so I stand corrected.

I have death or earlier critical illness insurance and I am wondering whether having AS as well as U is worth it? What might an ASU policy pay out for that my DOECI won't - a major accident I guess?

payless

Short term sickness say 2-12 months for anything whether covered by CIC or not.

Of course employer may already cover this.

Plus CIC will not normally pay out for stress, back problems (unless deemed incapable to work ever again)
and more basic illnesses/ accidents  that you will likely recover from that aren't included in the list of C illnesses listed in your policy (varies from co to co)
---
If you are out of the free period- checks its only U cover as suggested, then consider replacement-
depending on age the 2 that Martin sentioned seem OK

I can't broker pinnacle/ helpupay- but do have agency agreements with paymentshield, and even as a non mover you should qualify for 3m free (some plans only), waived exclusion period (if can prove claim free on existing policy), and a small kickback rebate from me (my sweetner for MSE users) .  Of course you can go direct to Paymentshield, but believe their products are the same thro' all channels

payless

Paymentshield have 27 different permutations based on a number of options
A , SU, or  ASU,
30, 60 day period
waiting period (back to day 1) / excess period
0, 3, 6 months free cover

For some time I have had their quote package on my website - giving quote/ info on the plan in Martin's article- (no free period, 30 day excess)
(I have also been providing a small cashback as a little sweetner on this plan)

Although sometimes works out cheaper to go for a free period plan

(care if someone holds an existing policy and wants to take adavtage of the 3m unemployment exclusion period they must send in proof of current cover)

Of course the helpupay appears cheaper for people under 35 and so may be better

System

I have no death cover (let alone anything else like sickness) I have to get life insurance for my new mortgage. Shall I just get MPPI instead? It sounds more useful to me.