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Mortgage Payment Protection Insurance
Cla1rem
Posts: 2 Newbie
Hi
I am wondering whether anyone can give me some advice please?
I took out Mortgage Protection insurance in November at a monthly cost of £52 per month, however I have now received a letter today from the insurance company (Payment Shield) to say that they have increased the premium to £94 per month - a hefty increase you will not doubt agree. Their rationale is the current climate however this was the whole reason why I took the insurance out in the first place surely they cannot just increase it within such a short time period - I went with the company as they were the cheapest at the time.
Can they do this under FSA guidelines - isn't insurance normally fixed for at least a year?
Really worried
Cla1re
I am wondering whether anyone can give me some advice please?
I took out Mortgage Protection insurance in November at a monthly cost of £52 per month, however I have now received a letter today from the insurance company (Payment Shield) to say that they have increased the premium to £94 per month - a hefty increase you will not doubt agree. Their rationale is the current climate however this was the whole reason why I took the insurance out in the first place surely they cannot just increase it within such a short time period - I went with the company as they were the cheapest at the time.
Can they do this under FSA guidelines - isn't insurance normally fixed for at least a year?
Really worried
Cla1re
0
Comments
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however I have now received a letter today from the insurance company (Payment Shield) to say that they have increased the premium to £94 per month - a hefty increase you will not doubt agree.
Paymentshield is the not the insurer. Norwich Union is. Paymentshield handle the administration.surely they cannot just increase it within such a short time period - I went with the company as they were the cheapest at the time.
They can justify quite easily. It isnt a product with a high profit margin and its a heck of a lot cheaper than it used to be in the early to mid 90s. Now unemployment is on its way up, the cost of cover is returning to the levels of the early to mid 90s with many of the providers.Can they do this under FSA guidelines
Yes. The plan has reviewable premiums. Not guaranteed.isn't insurance normally fixed for at least a year?
no.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
worth looking at http://forums.moneysavingexpert.com/...html?t=1438805 ( maybe mods can merge)Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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