Mortgage Protection Insurance Discussion

dunstonh

if i take sickness/injury cover is there a cheap way to do it?

Cheap yes. There are budget Permanent health insurance plans (PHI) and many budget PPI plans. Doesnt mean they are any good though.

payless

NeilB wrote: »

Wow it seems the norm is 120 day exclusion period for unemployment now, that's quite a lot. Has anyone recently bought MPPI with a lover exclusion period?

For transfers or new mortgages you can often get the exclusion waived, alternatively there are policies with only 30 exclusion - best see an adviser ( or a few until you find one with the access to the the right providers , as unfortunately many use just 1-4 for this class of business)

Petal_3

Hi there

OK....Mortgage with N/wide and so is MPPI. I've been thinking that the premiums were too high for a while...but you know how it is

Renewal as follows:

Mortgage Cover £1250 for disability and unemployment - excess period 30 days for both - max benefit period 12 months. Joint policy ie. claim for my partner = 50% and claim for myself = 50%

Renewal premium = £97.39 pm :eek:

Whilst looking around for comparison is there anything I should watch out for/any pitfalls or loopholes so to speak?

any advice would be greatly appreciated.

Buildings and contents also with N/wide - they're next!

Thanks
~x~

payless

good luck if doing it yourself, as the comparion sites don't cover all providers

Obviously things to look for

like for like cover ( or better) - same U&D, same excess premium, same benefit period .. is there an exclusion period - check if waived for transfers ... although even this does not avoid the issue if there's been an issue already that means you are aware of a possible claim.

steaprhys

Hi,i've never done this before so please be gentle!
Three years ago i re-morgaged my home and took out an mppi with Payment Shield,6 weeks ago i was made redundant after 29 years working for Hotpoint(Indesit UK) and my job moved to Poland.I have claimed on my policy and after much 'jumping through hoops' to satisfy all their conditions i was told i would recieve £373 a month to pay my morgage.This morning i have recieved a letter informing me that they will only pay £245,the current payment rate and they will refund any overpayment of premiums from the last few years.I was never aware of any duty to advise Paymentshield of any change in morgage rate,up or down and expected to recieve the sum my policy Quoted irrespective of the current intrest rate.Can they back out of their responsibility to me?If so perhaps potential customers should be made aware of this "clause" before they start taking 'refundable' payments off them and leaving people feeling "ripped off" just when they don't need it.

dunstonh

Can they back out of their responsibility to me?

They are not backing out. They are paying exactly what they should be paying. An MPPI is to pay the mortgage and associated insurances. It is not PPI policy that can pay more than that.

If so perhaps potential customers should be made aware of this "clause" before they start taking 'refundable' payments off them and leaving people feeling "ripped off" just when they don't need it.

its in the policy document. I checked recently for one of my clients.

If you want to protect yourself for more than your mortgage then you should not use a mortgage payment protection but use a wider range income protection. The clue is in the name, Mortgage payment protection. Your mortgage is protected and your mortgage is being paid. Job done and insurer is doing the right thing.

Paymentshield on their part are doing the honourable thing by refunding premiums that were overpaid. That is quite good as you wouldnt have overpaid for long as mortgage rates have only been this low for a year.

lewi5

I hope someone can help me clarify the exclusion period, I have taken out cover with Columbus Direct.

They offer a 60 day exclusion policy, but ithe policy says that you cannot claim in that period - what would happen if you were to lose your job in that time? Would you be ineligible to claim at all, or only until 60 days had passed?

Thanks in advance!

PsychoCenobite

lewi5 wrote: »

I hope someone can help me clarify the exclusion period, I have taken out cover with Columbus Direct.

They offer a 60 day exclusion policy, but ithe policy says that you cannot claim in that period - what would happen if you were to lose your job in that time? Would you be ineligible to claim at all, or only until 60 days had passed?

Thanks in advance!

I'm currently looking into a policy with helpucover.co.uk and have been reading the T&Cs.

My understanding is that you will have to wait 60 days until you start receiving your MPPI benefits... I'm not sure when you have to put your claim in - from day one or after 60 days. But if you have a 'Back to Day One' level of cover, then they will pay the benefits for the 60 day waiting period after the 60 days is up.

One line my T&C for the MPPI about unemployment exclusions is a bit unclear to me:

We will not pay any unemployment benefit if you had reason to believe that you might become unemployed

This could be read in many ways but I would have thought that with the way the world is at the moment that almost everyone has reason to believe they MIGHT become unemployed.

Also, how can you prove what you believed at the start date, and how can they prove what they thought you believed?

PsychoCenobite :eek:

PsychoCenobite

As an after thought to my above question... doesn't taking out an MPPI for unemployment mean that you had reason to believe that you might become unemployed?

It's a bit of a catch 22!

PsychoCenobite :eek:

LostSocks

I'm looking into redundancy pay again, as our's is now 4 times the amount we originally took it out for. After reading this thread, I'm wondering if I'm looking to cover the wrong amount.

Our mortage is an offset and the amount originally quoted to cover the interest and repayment of the mortgage was around £587 a month. We have rounded the payment up and pay £600 a month instead. When I put in the amount our mortgage is, do I put the amount that we actually pay (£600) or the amount it should be? Which to be honest I have no idea now, as we also offset and save around £40 a month in interest, so the amount would vary each month.

Thanks