Mortgage Protection Insurance Discussion

ChrisD7

In 2002 we took out MPP & for my husband in addition to the death cover we added unemployment cover & sickness cover
The problem is with the sickness cover & premium waiver which has a 3 month deferral period
In January my husband had a spinal operation - he needed 2 cervical discs replacing & also has damaged shoulder muscles - we notified the insurers & towards the end of the 3 month deferral period filled in the 16-page !!claim form & sent it off with copies of sick notes, hospital letters etc.etc.etc...
The insurers have been in touch with his employer & with our GP (Twice) - they have asked for surgery notes going back to 1995 !! & they are now saying that we have withheld information on the application form because we did not mention that my husband suffers from (mild) asthma -- we did not mention it because we were only asked if there were any medical conditions requiring ongoing treatment or if he had been off work sick for any period in excess of 3 weeks - his asthma is mild - he does occasionally use an inhaler - but has never been off work because of it - any way since when did mild asthma affect the cervical discs
It looks like they are trying to get out of paying - what do we do now - can anyone offer any advice

dunstonh

they are now saying that we have withheld information on the application form because we did not mention that my husband suffers from (mild) asthma

Ask them for a copy of the application and tell them that their questions didnt require disclosure. Although be wary that there is usually a catchall question that covers things like this.

It looks like they are trying to get out of paying

They probably arent. They may have gone digging to see if they could but the FOS guidelines on non-disclosure wouldnt allow them to not pay out in this case. a) its not related to the claim and b) from the way you describe it, it isnt something that would likely have increased premiums or resulted in rejection of cover.

easylife73

Could someone offer me some advice please? I have been driving myself (and my poor husband) mad for two whole weekends now and I don't seem to be making any progress!

We have a mortgage of about £740 a month and both work. My husband is in the police force and I work in admin in a school. He obviously earns a lot more than me, but if we lost my earnings that would be the equivalent of losing our mortagage repayment each month.

We have just taken out a S&A policy for him, to kick in after 6 months, as we both get 6 months full pay and 6 months half pay. I was looking at getting an U,S&A policy for me, but due to my lower earnings, the most I could get would be 75%.

My question is, is it worth it? And if so, what sort of policy should I get? I just want to make sure we are covered for the unexpected, but I am getting a little nervous that even if I go for a policy, somehow we will be unable to claim, as there are so many clauses that seem to kick in.

Any advice would be gratefully received!

dunstonh

My question is, is it worth it

It is if you suffer a claimable event.

And if so, what sort of policy should I get?

permanent health insurance (PHI) is most likely the best option.

I am getting a little nervous that even if I go for a policy, somehow we will be unable to claim, as there are so many clauses that seem to kick in.

With a PPI that can often be the case as its underwritten at point of claim. However, PHI policies are underwritten at point of application and have a much higher claims success rate.

dsharp7th

New question re MPPI, can't find the answer in search...

Unlike Mortgage Life Cover, MPPI seems to be a policy for individuals only, therefore I presume both my wife and I should have separate policies.

Is it required then, that I specify the actual monthly mortgage payment when getting a quote, or should I and my wife each specify 50% of the cost in our separate policies, on the basis that if we both were made redundant the two policies would contribute half of the mortgage each (and if one of us were still in work, the other 50% could still be afforded from salary)?

Many thanks in advance!

meryll83

Forgive me if this is a stupid question...

If as a couple want MPPI, do I have to do 2 separate quotes and applications for each individual, with both being covered for the full monthly mortgage payment?

We did it through our lender before, so that's why I don't know quite what I'm doing!!!

dunstonh

meryll83 wrote: »

Forgive me if this is a stupid question...

If as a couple want MPPI, do I have to do 2 separate quotes and applications for each individual, with both being covered for the full monthly mortgage payment?

We did it through our lender before, so that's why I don't know quite what I'm doing!!!

Depends on what level of benefits you want and which provider you intend to use.

meryll83

dunstonh wrote: »

Depends on what level of benefits you want and which provider you intend to use.

Can you point me in the direction of any advice on this?

dunstonh

meryll83 wrote: »

Can you point me in the direction of any advice on this?

https://www.unbiased.co.uk - the uk database of independent financial advisers.

marshallka

dunstonh wrote: »

You are only allow to protect yourself up to 75% of your income (many providers stop at lower figures). This is a combination of all your policies and payment protections, waiver of premiums on pensions etc. So, if the £1500 is around the 75% mark then yes, they are correct in refusing your claim.





The FOS cannot overule the Govt limits.

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Dunstonh, can you please answer this for all of us. If you have MPPI and also PHI and the PHI is for 75% of your income can you still claim the MPPI as well????