MPPI with Paymentshield - Premiums increase

ceivegz

My PaymentShield policy covering for unemployment only for a total amount of £2194.50 is going up from £31.82 to £61.45 (£64.45 including a new £3 "admin" fee).

This is nothing more than an abuse, taking advantage of customers' fears and the fact that overall mortgage-related costs will still be lower for most customers even with this increase.

I took out an alternative Accident, Sickness and Umemployment cover policy worth £1,450 with Mortgageprotect (the top buy through Moneysupermarket) costing £39 yesterday and was in two minds today about whether to cancel my new policy or pay two premiums (at a cost of over £100 per month) until the waiting period on the new premium ends.

Instead, I have just called Mortgageprotect and asked them whether they could waive the waiting period if I can prove that I have been continuously covered. They asked whether I had been covered for at least 6 months and whether I had made an claims and then agreed ....RESULT!!

ceivegz

dunstonh wrote: »

No. Its trebling.



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.

Unemployment trebling! What, from the current 2 million to 6 million? You're clearly spending way too much time with your head stuck in the Daily Mail.

UK unemployment has risen from around 1.6 million to 2 million in the past year. Even during the last recession of the early '90s unemployment stopped just short of 3 million and it still took nearly 2 years to get there from the 2 million level we're at now.

On the current data, I'd be satisfied with PaymentShield increasing premiums by 30% or even 50%, but until they can prove that their risks have increased any more than this or unemployment has ALREADY increased by more than these amounts, doubling my premium is a veritable removal of my urine.

Every company in every industry has a good time to up its margins and make more profit. Now is a particularly good time for MPPI companies. It's not illegal, just somewhat unscrupulous and unfair.

dunstonh

Unemployment trebling! What, from the current 2 million to 6 million? You're clearly spending way too much time with your head stuck in the Daily Mail.

Unemployment was closer to 1 mill at the start. 3 to 4 mill is the figure that it is expected to peak.

Every company in every industry has a good time to up its margins and make more profit. Now is a particularly good time for MPPI companies. It's not illegal, just somewhat unscrupulous and unfair.

That only works if they hadnt lowered premiums in the good years to a third of what they used to be in the last recesssion.

ceivegz

The claimant count may have been around a million, but the unemployed (i.e., the required status for claiming on these insurance products) was already 1.65 million in Jan 08; ~2 million currently and never been over 3.2 million (all the way back in 1984).

I moved to PaymentShield after British Insurance (owned by the same company) doubled my premiums at a time when unemployment was falling to record low levels. It's clear that many companies use initially low rates as a bait, but then use your fear of not being covered (as once you move you'll have to pay for a policy that doesn't cover you for 3 months) to trap you into paying what ever premium they wish to charge.

SJ610

If you are llooking for new mortgage protector insurance, be careful to read the small print regarding the qualification period for redundency claims. You may find you are not covered if you are made redundent in the first 120- 250 days of taking out a NEW policy.
Also, many companies have withdrawn offering full Accident, sickness and redundency for existing mortgage clients - you may only get cover if you are taking out a new mortgage.

SJ
Insurance Adviser

Wutang_2

SJ610 wrote: »

If you are llooking for new mortgage protector insurance, be careful to read the small print regarding the qualification period for redundency claims. You may find you are not covered if you are made redundent in the first 120- 250 days of taking out a NEW policy.
Also, many companies have withdrawn offering full Accident, sickness and redundency for existing mortgage clients - you may only get cover if you are taking out a new mortgage.

SJ
Insurance Adviser

This site recommends particular companies and advisers for people to save money regarding their ASU - which is advising people without knowing their circumstances...Lots of folk do this and then find they have 120 day exclusion periods.

homeadvice_2

Ok guys in the current ecconomic climate, I too am looking into getting MPPI (as far as I know my job is safe by the way) but you can't be too careful especially when you have a family. I've done a fair bit of googling and now I'm a bit confused as to weather or not I need Mortgage Payment Protection anymore or instead go for Income Payment Protection ....what do you guys think?

I have come across a number of sites like this one www.mortgage-paymentprotection.com, this site (obviously) and their is a great little artical on the channel 4 website. But the message is confusing and the comparison table & info detailed on the other two sites would suggest that income payment protection is the better option but this site suggests Mortgage Payment Protection Insurance without giving any alternative advice really. Then some of you guys seem to rate it and other don't & then there is all this stuff about increased premiums. Help? Anybody? This is making my head hurt :eek:. If I can't get anywhere do you think I should just get quotes from each of the providers in the comparison table (two of which I think are underwriten by Legal & General)? Are Legal & General any good for this type of insurance?
Thanks in advance.
J.

dunstonh

would suggest that income payment protection is the better option but this site suggests Mortgage Payment Protection Insurance without giving any alternative advice really.

Permanent Health insurance is the best form of income protection but does not include unemployment cover. PPI and MPPI are very similar but have certain limit differentials. If you dont want unemployment cover you should consider PPI/MPI as budget options.

This site is not authorised to give advice and doenst go into detail in all the options.

homeadvice_2

Permanent Health insurance is the best form of income protection but does not include unemployment cover. PPI and MPPI are very similar but have certain limit differentials. If you dont want unemployment cover you should consider PPI/MPI as budget options.

Thanks mate I was not aware of that ...I'll keep that in mind. Guess its time to go get some quotes & compare.

This site is not authorised to give advice and doenst go into detail in all the options.

I had kind of figured that & took what was said with a pinch of salt. Just liked the comparison table and breakdowns which are identical to the insurers websites (from what I can tell), seemed easier than doing alot of back and forth. Thanks for the advice I'll be carefull & keep an eye on the forums too. Still wondering about Legal & General tho ...any sage advice on them?
Cheers,
J.

homeadvice_2

Hi Guys ...well took the plunge with Legal & General income payment protection. Decided not to go with MPPI due to reason sited in this thread. Got a quote through insureme-online.co.uk via https://www.mortgage-paymentprotection.com and got the first 3 months free & monthly payments of £52 a month. happy as a pig in you know what. Just wanted to say thanks for all the helpfull posts on this thread and special thanks to dunstonh for taking the time out to post.
Regards,
J.