Mortgage Payment Protection Insurance

payless

Matter of priorities, and how far your budget goes

If single with no dependents then MPPi, or long term income protection imay be more use than life cover.

System

I am 47 years old I am taking out a £88000 mortgage over 25 years costing £472 per month. What will I have to pay for mppi with life cover?

payless

Mppi for unemployment & disability ( ASU) will be around £3.75pm / £100 cover so £472 will cost £17.70 - or £20.58 with 6m free on a new mtg.

Would expect life cover (decreasing) to be in region £15-£20 depending how/ where purchased- if good helath/non smoker.

Taking over 25 yrs takes you to over 70 - prices start rising, and different FSA rules about who can advise on it.

System

Hi There,

My husband took out protection cover when we switched to A&L we get approx £700 cover for £42/month which covers 100% on him for redundancy/sickness as I'm not working now. He since found out he has Permanent Health Insurance from his company so if he became ill he would be covered for most of his income until he was 65 so we need to only cover the redundancy aspect - however its a minefield out there.

Are there any policies that will pay for more than your mortgage i.e. cover other vital living expenses household bills, insurances etc - most appear to only cover a max £1500/month and mainly for mortgage.

Appreciate any info to help clear muddy waters.

thanks, Rita

payless

most allow mortgage plus addiotional insurances, plus upto 25% extra

and can be taken on Sickness, unemployment or both.

Martin's articles http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1076369501,83567,
looks at MPPi, and gives links to providers-
also available via many mortgage / insurance brokers if wanted to talk it thro' with someone- plus some have access to products with free initial periods.


For more than the above calculation , you would need a standalone plan (or poss topup)


see

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1083023073,92723,
but this can be more expensive than some MPPI plans -

although again combined total is likely still £1500 with most firms.


--If need over £1500 , then its usually for Mppi only ( although maybe a standalone option )
and rates are likely to be higher due to lack of competition in that market.

System

I have a Full ASU policy with Pinnacle called Helpupay for the amount of £1,500 back to day 1 cover and has been running for over 15 months.

I will be having an op soon and am anticipated to be out of work for a period of 4/5 weeks. My work place will continue to pay me. Will I have a valid claim still?

SteveJD

PS: I’m not being greedy that’s what the policy’s there for isn’t!

IvanOpinion

I would be interested in the answer to SteveJD's question since by my reading of the policy wording (especially on the low cost policies) they never seem to pay out. They seem to have exclusions that say it will not pay out if you get fired, you receive sickpay, you voluntarily leave your job or (and I am not sure about this one) if you receive a redundancy package.

When exactly do these policies pay out ? The only time I could see it would pay out was if your company went bankrupt.

Anyway, I don't have one but instead put £50+ a month into a separate savings account. After a few years I had more than the policy would ever have paid out - I still keep this money aside in a separate account and keep adding a little bit to it each year. My intention is to maintain at least 3 months salary in this account (hopefully I won't need to touch it).

Ivan

Mortgageman

Was it an existing condition? (had you seeked medical advice for this before policy inception)

I haven't read the full T's & C's, but a general rule for insurance is that you can not be better off claiming, than working.

System

The condition occurred a few months back.

At the end of the day I’m paying into an insurance policy to cover me for an amount in my case £1,500 for Sickness, Unemployment & Accident cover. It’s not my fault that I’ve got to have the OP, frankly I’d rather not if I had the choice.

I can’t believe that the insurance company would have the nerve to say that we won’t be able to pay as you would be better off. That would be taking the biscuit.

I think Ivan’s made a good point, but at the end of the day you’ve got to access how confident you are in getting a new job, market conditions etc and the risk of you having an accident/sickness occurring.

I’ll let you know what happens when I present my claim in early July when I anticipate to be back at work. I’ll also dig out my T&C’s for interesting reading whilst recovering. As if I don’t have better things to do.

Wish me luck!

SteveJD

IvanOpinion

Steve
You got it ... good luck. Keep us all informed.

Ivan