Mortgage Protection Insurance Discussion

Zingari_2

Hi This is my first post so i hope im posting in the right thread.

I am a non exec director of a company that has been making a small amount of redundancies of sales staff, no management has been affected,although some are now on a four day week including myself.
My gross wage before the cut in days was £125k per year, now down to around £95k. My question is this,are there any companies that will cover the higher earners for redundancy and loss of income, and with correspondingly higher mortgage payments? My mortgage alone is around £1800 per month,which seems to be above the normal payment threshold for this type of policy.

Thanks in advance

dunstonh

£1800 pm cover is available. Although probably not online. You would need to see a broker or IFA.

Zingari_2

dunstonh wrote: »

£1800 pm cover is available. Although probably not online. You would need to see a broker or IFA.

Ok thanks for the response dunstonh

payless

No probs in the level of cover being available its the circumstances that would be questionable in tis case .. ie redundancies in company, cut down hours and also someone in aposition that might be deemed as should know if likelihhod of foreseeable redundancy

mumofnat

Hi, I'm new to this so hope I've done this right!

We've had MPPI cover for 5 years (1 claim 4 years ago), been with current policy (can't say same for provider, it's changed hands 3 times now!) for just under 3 years and never yet claimed.

We've also had our letter from British Insurance advising that our MPPI policy will move provider and that our premiums were to increase quite considerably, although from reading this thread seems par for the course. It's just my husband whose insured, £1673 (fixed rate mortgage + just under 25% extra) cover increased from £50 to £97 which is under the £6.50/£100 cover advised in an earlier post as the peak in the last recession. I've attempted to shop around with no luck so far - iprotect underwriters have not accepted his application as it does not meet the scheme criteria (?? - I've asked for an explanation), only other option that came cheaper than this new premium seems to be the same underwriter as the current policy so that's probably a waste of time.

Does anyone know if iprotect have ceased to offer new policies? Is the fact that he's had an application not accepted likely to cause an issue with any further applications for the same cover in the coming months/years?

With all this in mind we'll probably stay where we are, ride it out (hopefully) and amend our cover (fixed rate deal ends this month and moves to base rate tracker + 2% so at current cover we'll be over insured), at least that reduces the outgoings. Any ideas, based on the last recession, how long we can expect to pay this kind of peak/£100 of cover?

Thanks in advance

payless

sorry but rates mean nothing unless we know if its unemployment , sickness or both. + what waiting or excess period and benefit period.

I've done some dummy quotes on some comparison sites , and the prices seem to be higher than some of the " adviser" options

mumofnat

It's both sickness & unemployment covered for 12 payments. If a claim is made it is 30 days until it is paid (backdated to the day the claim is made assuming claim is successful), not sure if this is classed as 30 days waiting or 0 (was 0 on iprotect)....

mow2512

Hi, I believe it is possible to get joint MPPI for accident sickness and redundancy but seem unable to find anyone that quotes them?? I can find joint life policies everywhere but not MPPI... Am I blind or not looking in the right places?

Please help

Fliss_M

Are you sure you want joint? It would probebly be cheaper and easier to claim with a single policy

The_Violet_Fairy

Hiya!

I'm attempting again to post this -as it lost my "quick post" (Pressed the wrong button )

We've been to the bank today, to complete our Mortgage application, as you might expect, we were offered everything under the sun!

I'd just like the opinion of some of you more experienced posters, just to make sure we're not being ripped off.....and if there's a better value (not necessarily cheapest!) way to do this, then please let me know!
You need to know (I think) that my husband works full time, and I'm a housewife/full-time mum.

Firstly, we've agreed to take the "Payment Protection Plus" which is a MPPI policy - it covers accident, sickness and unemployment.. I'm finding it a little hard to compare, as the documentation I have states the cost per £1000. Am I right in thinking that 50p (£0.50)/1000 is the equivalent of £5 per £100?
The cost of this Policy will be £67.50 per Month. Does this seem reasonable?

Secondly, we've been offered "Decreasing Critical Illness with Life Cover", for which we will need to pay £104.71 - this sounds expensive to us. We're both non-smokers, who are in good health.

As warned in this thread, the booklet lists the "critical illnesses" that it covers, but also states that not all cancers are covered. It also covers terminal illnesses (not specified) and children's critical illness (but under limited circumstances).

So, I don't know if this is a good idea or not. My husband has a certain amount of cover with his work, but I'm not sure how much. The lady at the bank said this policy paid out a lump sum to pay off the mortgage, and that if one of us had to claim, that did not mean the policy was terminated for the other person - so effectively it would be possible for it to pay out twice.

Any advice on these matters would be most welcome!