Unemployment cover being withdrawn Friday!

captain_nugget

scrooge2008 wrote: »

I had MPI with two insurer's and was only able to claim on one policy. Fortunately, I argued that I had been mis-sold the other one, and got all my payments back, as it was not clear that I could only take out one insurance policy against the mortgage. Captain nugget, I would phone both companies and check out small print on policies.

How do you argue this? When I took out the nationwide one years ago I didn't even get a policy booklet so there's no way i could know i couldn't take out 2 policies. There's something in the paymentshield booklet about reducing the payment if there's another policy on the mortgage but I have nothing for nationwide.
Help!

Vancat

We used to have a mortgage with Halifax. Also had a Halifax MPI. When we remortgaged away from them, I asked if we could keep the insurance (as we didn't want to have to go through the same exclusion period.)
Halifax insurance said "No". They only insured their own mortgage holders.
There was a clause in the policy from Halifax to say it was our responsibilty to cancel any associated Halifax insurance when we remortgaged.
We went with Paymentshield, as a stand alone policy, who took proof of the Halifax existing cover, and waived the exclusion period. (Luckily didn't need it then....2003)
I've since been made redundant. Paymentshield are currently paying under the insurance, and have been very good so far.
I also have an Income Protection policy, with another insurer. This is also paying out. The two policies together, cover just under half of my gross salary, pre redundancy. Which, with contributions based JSA, comes to nearly my pre redundancy take home pay.
So you can have more than one type of policy, but not two of the same, and you must make sure you are not over insured, or you'd be getting more not working than working...and insurers won't cover that, obviously;) !
Really glad I took them out all those years ago, although the costs have been thousands!
VC

captain_nugget

Vancat wrote: »

So you can have more than one type of policy, but not two of the same,
VC

Do you mean 2 of the same with the same insurer? You have 2 MPPI policies with different insurers and they're both paying out?
Really struggling to get my head round everything at the moment/

Vancat

Sorry if I've confused you!
I have a Mortgage Payment Protection Insurance with one company, and an Income Protection Policy, ASU (Accident Sickness and Unemployment) with a different company. One policy is purely for the mortgage, the other is for "everything else", i.e any other bills/credit commitments/daily household expenses or whatever you spent your salary on.
As these are different policies, and the total claimed/insured under both haven't exceeded half of my gross monthly salary, they will both pay out at the same time.
I was careful when taking out the policies, years ago, to make sure that I wouldn't be over insured if the worst happened, (which, unfortunately, it has:()
One of the questions asked on the claim forms is " Are you claiming under any other policy for the same thing" or words to that effect. I'd think if you did, for whatever reason have two policies covering the mortgage, the insurers would get together and only pay half each or something?
I'm sure someone else with more knowledge will be along to clarify.
Regards
VC

scrooge2008

captain_nugget wrote: »

How do you argue this? When I took out the nationwide one years ago I didn't even get a policy booklet so there's no way i could know i couldn't take out 2 policies. There's something in the paymentshield booklet about reducing the payment if there's another policy on the mortgage but I have nothing for nationwide.
Help!

Hi,

I had a copy of both policies. The Customer Services Manager asked me to send in a letter from my other insurer stating that I was covered for MPI and the starting date of the cover, which I managed to get. She then refunded all my payments. If you ask Nationwide, they may be able to send you a copy of your original policy. At the time I took out two MPI policies thinking I was being clever, because I was unable to get an income protection policy anywhere, due to a spate of redundancies within my working sector. They were taken out in 2000, so I had paid a good bit in.

captain_nugget

Ok thanks.

CFC

Payment shield have also just put up their prices for existing customers. As they can't put up the premium, they have put up the 'administration charge' that they introduced when Aviva bought them out...