MPPI with Paymentshield - Premiums increase

msc1977

dunstonh wrote: »

You dont think much of your adviser. I suggest you dump him or tell him what you think so he can dump you.

I think that is a little unfair - i was merely going by information provided on this site - we have only purchased MPPI once before on our original mortgage, this was the Payment Shield policy and we have just allowed it to roll on month on month. I was simply looking for other opinions rather than relying on that of just one person...i thought forums were here to help people rather than judge.

thank you for your opinion.

msc

msc1977

dacouch wrote: »

If you read the many threads on this subject you will come to the realisation that in the current climate you should transfer companies with extreme caution. Payment shield are a good company to be with as the cheapest is not always the best and its a lesson you do not want to learn when you most need it...when you put a claim in

thanks for this, you are absolutley right about the claim situation and i know of a friend who had no problems following her husbands redundancy claiming through PS.

thanks

Vancat

Currently claiming with Paymentshield.
They have been very pleasant, and helpful throughout.
I told them that I was having a problem getting the ABI1 forms from JCentre on the actual days that the claim form needs, i.e.every 30 days.
Obviously JC are so busy, it's impossible to just pop in and get a claim form when it isn't your "signing on day". (In this area they've even told people to sign on every 4 weeks when they're overstretched.)
Paymentshield were fine, and said just get the forms signed when you do sign on....they understand the problem, and the claim will still be paid.
HTH
VC

SunnyElla

Hi all,
I hope this is the most appropriate place to ask this question. I’m looking to buy some MPPI. I want a fair price that’s not going to hike.
As far as I can tell via a scout through the forum, Assurant, Payment Shield and Pinnacle have all upped their prices in the last 6 months ‘as a response’ to the increased unemployment. There may be others but I can’t find them.
So my point is – if these three have upped their prices, I assume that others will too. Is it better to buy a new policy that is already high that will (hopefully) not increase further? Or should I buy a cheaper policy now, that may well jump in the near future? How easy is it to switch between policies? Do people expect these changes across the industry or have these three just been particularly irresponsible?
I don’t mind paying for peace of mind, I just don’t want to be ripped off.
Any thoughts or industry insights gratefully received.

dunstonh

So my point is – if these three have upped their prices, I assume that others will too.

A lot of them share the same underwriters or re-assurers. So, yes it is logical to assume they will follow. However, they will often have their own internal review points which differ from other companies. We had one broker firm email us last week saying that all providers for PPI and MPPI through them have pledged to keep the same price until July. Of course, you know what that means come July.

How easy is it to switch between policies?

They are pay as you go so you can switch easily. However, for unemployment the period of qualification will restart each time. These range from 60 to 180 days. So, change every 3 months and you may never be covered because you never get off the qualifying period.

Do people expect these changes across the industry or have these three just been particularly irresponsible?

In the last recession the rates were around 6%-7%. They fell to 1.5-2% in the good years. Its fair to assume that we could see rates rise to the 6-7% range again.

Although it could get higher than that as the cover is far more fragmented then it used to me (more providers, less going to each one, harder to absorb costs) although technology improvements and competition could offset that somewhat (neither of those were that common in the last recession).

OshayAway

dunstonh wrote: »

They are pay as you go so you can switch easily. However, for unemployment the period of qualification will restart each time. These range from 60 to 180 days. So, change every 3 months and you may never be covered because you never get off the qualifying period.

In fact, some providers will allow you to switch and by taking the policy number of the previous provider, will waive the initial exclsion period.

There are also guarenteed premium policies available now although they are obviously more expensive.

Your best bet would be to speak to an ifa / broker who has access to several providers. Unfortunately many only use one or just a couple so the products and options availlable through them are very limited.

dunstonh

In fact, some providers will allow you to switch and by taking the policy number of the previous provider, will waive the initial exclsion period.

I have seen it with a few but they are in the minority. So you are right, they do exist.

ceivegz

Wutang wrote: »

If you ran an insurance company providing redundancy cover and at the same time there were lots and lots of redundancies being made - is it really that huge a surprise?

My premium is doubling. Is unemployment also doubling? I think that's a very farfetched assumption.

payless

even if you do get an exclusion waiver ( for transferring policy) note that you must still answer truthfully any questions - ie many will ask if employers are currently restructuring - even if not in your dept , and thats usually enough to get it kicked out

dunstonh

Is unemployment also doubling?

No. Its trebling.

I think that's a very farfetched assumption.

I suggest you wake up and look at what is going on. We are in a recession. It is still to get worse before it gets better.