Mortgage PPI - do we need it?

IsoChick

As part of sorting the finances out :eek: I have been going through all our paperwork...

It seems we have a payment for mortgage PPI coming out every month (from PaymentShield).

This was all arranged when we got our mortgage through an IFA 2 years ago. Of course, our money problems weren't apparant then. My question is, do we need this PPI? Is it wise to cancel it? I know that if we do, our IFA will be on the phone having a go at us for doing it :rolleyes:

Both OH and I have fairly secure jobs (I work in a university and OH in a logistics business, contracted by local authorities) and we have seperate criticial illness cover etc.

It just seems that it might be another superfluous payment we have signed up to... thoughts/ideas??

Cheers!

dunstonh

My question is, do we need this PPI

If you were made redundant or off sick could you pay the mortgage?

That is what it all boils down to.

IsoChick

dunstonh wrote: »

If you were made redundant or off sick could you pay the mortgage?

That is what it all boils down to.

If either of us were made redundant, we would get redundancy pay, and the PPI wouldn't cover us (from what I can see, anyway)...

If we went off sick, our critical illness cover should cover us (provides day one cover)...

So technically, I suppose, it's a bit of a pointless payment... I think I need to speak to our IFA again, if I can get hold of him, and ask him whether he feels its worth it.... :rolleyes:

dunstonh

If either of us were made redundant, we would get redundancy pay

How many weeks pay will that give you?

and the PPI wouldn't cover us (from what I can see, anyway)...

It will if its paymentshield. Only redundancy pay that is in lieu of notice (or garden leave) is considered.

If we went off sick, our critical illness cover should cover us (provides day one cover)...

Criticial illness cover pays a lump sum on diagnosis of a specified critical illness. It is not sickness cover.

IsoChick

dunstonh wrote: »

How many weeks pay will that give you?

It will if its paymentshield. Only redundancy pay that is in lieu of notice (or garden leave) is considered.

Criticial illness cover pays a lump sum on diagnosis of a specified critical illness. It is not sickness cover.

No idea, as neither employers redundancy policy gives set amounts for redundancy. Famous last words but, there is very little chance of either of us being made redundant, due to the nature of our employers

I think, but will check, that we also have sickness cover and life assurance(with friends provident) as well as critical illness cover

So much paperwork and so little time...

Thanks for your help!! :T

opinions4u

IsoChick wrote: »

No idea, as neither employers redundancy policy gives set amounts for redundancy. Famous last words but, there is very little chance of either of us being made redundant, due to the nature of our employers

Unless the government decides to take an axe to public spending after the recession in order to balance the books. There's an election due within 18 months. Could be some severe policy changes after that, regardless who wins.

I think, but will check, that we also have sickness cover and life assurance(with friends provident) as well as critical illness cover

Make sure you know exactly what cover you've got, when it pays out, how much it pays out and what the exclusions are. Only then can you assess value for money.

My view is to keep the policy until a few months after whichever happens last: recession ending or general election. Then review it.

Employers can agree redundancy terms with unions. These rarely have legal standing and can be torn up with little or no notice. At which point you are relying on statutory redundancy pay. 1 week pay for each year of service capped at £330ish a week.

IsoChick

Luckily, to make anyone redundant where I work, unions need to be consulted, committees need to be consulted, staff need to be consulted... and this is before they even get down to the nitty-gritty of somone actually being told their job might be at risk...

If the unions don't agree, the employer can't do anything. I work in HR and the unions have really slowed everything down. It's actually written in our consitution that the unions have the last say in stuff. We've been wrangling various employment policies for over 18 months with no end in sight at the moment....

However, I think that we'll be keeping the policies for now, just in case.