Mortgage Protection Insurance Discussion

chumpy7

I've just been given 15 weeks notice of redundancy. At the end of the 15 weeks I will be unemploed and I will claim my mortgage payments off my mortgage protection policy with TSB.Ggiven that I will be unemployed with no job to protect , will I still have to pay the premiums whilst I am claiming on the policy ?
regards Mick

twinkletoes21

We took this out in 2004 we have been paying £27.80 per month then it went upto £31.66 but has just dropped down a bit as our mortgage has come out of fixed.
My husband is self employed and has been since we took it out i have just informed them that i am now self employed and they have clrified that we have to be out of work for 30 days cease trading and sign on at job centre!! Which is ridiculous we went through a financial advisor when we took this out!!

We now feel that we have been paying all this money out for 5yrs and it is no use to us what so ever as we also have mortgage life assurance which i am now wondering if we would be better to change to life inssurance instead?

Any views would be greatful as my husband is out of work at the moment but it won't be for longer than 30 ans as he has his own business is not going to cease trading!!

Many thanks a stressed person!!

dunstonh

they have clrified that we have to be out of work for 30 days cease trading and sign on at job centre!! Which is ridiculous we went through a financial advisor when we took this out!!

What is ridiculous about that? The unemployment cover is to cover you when you are unemployed. Ceasing trading and signing on is common sense and is similar to the requirement that employed have (with regards to signing on).

i am now wondering if we would be better to change to life inssurance instead?

Which would be fine if he died but what if he was ill?

Any views would be greatful as my husband is out of work at the moment but it won't be for longer than 30 ans as he has his own business is not going to cease trading!!

Your husband is not out of work. He is self employed. Being self employed means that work will be erratic at times. However, that doesn't make him unemployed.

twinkletoes21

Um because this wans't made clear to us in the first place and what is the point of having this we are never going to cease trading as we both have our own companies.
We basically were mis sold this as we are never going to be able to claim from this.

Yes we have this cover and mortgage life insurance so seems pointless thanks for your views which have been less than helpful, saying that my husband and i don't have commen sense!!

dunstonh

Um because this wans't made clear to us in the first place and what is the point of having this we are never going to cease trading as we both have our own companies.
We basically were mis sold this as we are never going to be able to claim from this.

So, when you were asked if you wanted accident, sickness and unemployment cover, why didnt you say you didnt want unemployment cover?

your views which have been less than helpful, saying that my husband and i don't have commen sense!!

Where do I say you dont have common sense?

Look, its quite probable that a permanent health insurance policy is better for you than an MPPI. However, there is nothing wrong with the policy you have. It does cover you for unemployment. There is no cover out there though to cover days off due to no work being on at the time.

Jon2010

Hi,

I have a curly one for you. I am purchasing a house on a 3 year fixed term mortgage. Unfortunately during the very late stages of purchase I have discovered that there is a possibility that the Home Office may decline my current visa application. I have a few options available and feel that the chances of having to leave the UK are minimal. If I do have to leave (for long enough to have another application approved etc) I have funds to draw on which could service the mortgage for the duration of the fixed term, but, I will only use these funds if it becomes COMPLETELY necessary. I have plans for these funds - to buy a house in by home country one day.

The main question here is...... Now that I know there is a possibility of not being able to work in the UK due to potentially not having a valid visa, does that count as foreseeable redundancy, etc?? Is there a policy that will cover such things? I expect that due to a higher risk that higher premiums may be necessary until the uncertainty has been resolved.

I would like to point out that I am in secure employment, well respected at work and have been working in the UK for quite a few years. I do not intend to work illegally as this will jeopradise my long term plans to stay in the UK with my British partner and start a family. I'm just trying to foresee and plan for the worst with the best information that I have available.

Please don't think that I am being stupid here, it's a calculated and managable risk.

Any help with this matter is appreciated.

dunstonh

For an MPPI to pay out on unemployment you have to be signed off by the benefits agency. If you dont have a valid visa then I cant see you getting signed off by the benefits agency and therefore the policy would not pay out. Thats how I would see it anyway.

cookie47_2

Me and my husband took out a £104,000 mortgage with Halifax 4 years ago. We had to take out their total mortgage protection and buildings insurance or we would not get the mortgage. We pay nearly £115.00 a month for our insurance. We took the policy solely on my husband for unemployment because I was only part-time. My husband is a self employed joiner.

Have we been mis-sold? How would we know if we would be covered for unemployment. Made enquires with Halifax and was told it was a grey area!!

Very confused unsure what to do!!!

dunstonh

Have we been mis-sold?

No.

How would we know if we would be covered for unemployment.

Because if the plan covers unemployment he would be covered.

Made enquires with Halifax and was told it was a grey area!!

Its not a grey area. If your husband ceases to trade and pay class 2 NI and is signing on then he should be able to claim.

morecowbell

Hi, I have only just found this forum, and hope this is the right place to ask this question.

I around 1991 I bought a house with an Abbey mortgage, and took out Abbey Paymentcare. I moved house in November 2002, settled the mortgage with Abbey, and took out a mortgage with another building society. My paymentcare direct debit was never cancelled, and the monthly payments have still been taken ever since.

I am concerned that since then, I have not been covered. As they don't know who my new mortgage is with, my new address or even my name as I have been married since then.

In the terms and conditions that I have found online it states

“When does your policy end :

The cover provided by this policy and all benefit
payments will end, if any of the following happens:

Your mortgage agreement is transferred to a third party”


If this means I have not been covered, should I be repaid my premiums?


Thanks,
Sam