Mortgage Protection Insurance Discussion

payless

ANATS - many inomce policies will be reduced if another policy is also in place- the only way around this is to get BOTH providers ( if topping up with another) to confirm they are aware of other policy and will make full payout

payless

Frangi

this is the problem with non-advised sales - no comeback

Each policy on the market is different, so for policies sold via that site the only people that should answer your question ( they don't give advice) is the actual provider themselves . even on the the site they say

justclick4cover.....offer various insurance policies on a non-advised basis only. We offer no advice or recommendation as to the suitability of a product for your specific financial needs. You should ensure that you are happy that the product is suitable for your needs. If you require advice we recommend you contact your financial advisor.

saineegan

Thank you for your help dunstonh.

You've given me a lot to think about. I know you can't give advice and nor have I taken it as that, but do you think it's best contacting a local IFA and getting them to help with a PHI policy and then one for unemployment ? I'm assuming this is what you mean by "segmenting your needs"

Are IFA's mortgage brokers as as well, as I will need to renew my mortgage in June and that's when I want to take out PHI and Unemployment insurance. But for the mortgage I want 'fees free' and 'whole of the market' and I'm wondering if the same IFA could give 'free advice' on the policies that I want to take out, or is that something I should ask upfront- it's just I can imagine this may take a fair bit of time.

You mentioned level term insurance isn't for a mortgage- am I perhaps missing the point, as after reading the articles under the mortgage section, I thought I this could provide the same benefit for both my mortgage and security to my family in the event of death, although I have a repayment mortgage which is obviously getting smaller each yr.

One last thing - would you know if these policies above, remain valid if one lives outside of the UK in Australia, or again it is down to the Ts & Cs of the individual provider? My current provider Legal and General keeps the policy valid anywhere in the EU as well as Australia.

dunstonh

but do you think it's best contacting a local IFA and getting them to help with a PHI policy and then one for unemployment ?

Unless you contact an IFA you wont get whole of market access. It really depends on whether you know enough about what you are doing and know who the best providers are to suit your needs.

Are IFA's mortgage brokers as as wel

Some are, some are not. Those that are not tend to employ/have access to a dedictated mortgage broker.

But for the mortgage I want 'fees free' and 'whole of the market' and I'm wondering if the same IFA could give 'free advice' on the policies that I want to take out, or is that something I should ask upfront-

Ask up front. Different business models and charging exist like most businesses.

You mentioned level term insurance isn't for a mortgage- am I perhaps missing the point, as after reading the articles under the mortgage section, I thought I this could provide the same benefit for both my mortgage and security to my family in the event of death, although I have a repayment mortgage which is obviously getting smaller each yr.

The chances of your family proteciton and mortgage protection expiring at the same time are highly unlikely. Plus, if you move house in the future and have to adjust the mortgage life assurance you end up having to do the whole lot. You should single out the needs. Its quite common for spouses/partners to have different levels of need as well and often you can end up with 4 policies or segments.

One last thing - would you know if these policies above, remain valid if one lives outside of the UK in Australia, or again it is down to the Ts & Cs of the individual provider? My current provider Legal and General keeps the policy valid anywhere in the EU as well as Australia.

Depends on provider and area and for how long. If you know you are going to live abroad in the forseeable future, they ask you to declare it.

haveibeenhad

Hi,

I took out MPPI for unemployment with Paymentshield in 1999. I am now being made redundant and phoned them to find out how to make a claim.

I was surprised to find that I had to be registered unemployed, and on further enquiry with CAB find that because I'm not currently eligible for income-based JSA I am unable to claim on my MPPI policy.

My question is, should I not have been told this when I originally took out the insurance? If I should have been, is this a case of miss-selling that I can claim for?

If I haven't been mis-sold, and I just have to lump it, what happens to my policy whilst I am unemployed? The policy states it's only valid if working 20+ hours per week. As I too am having my monthly premium increased I don't want to end up paying for something that I am never going to be able to use.

dunstonh

I was surprised to find that I had to be registered unemployed

Not that much of a surprise surely. It stops people who choose to stop work from claiming. If you are unemployed for genuine reasons they you will be registered as unemployed. It doesnt matter which type of JSA you get.

My question is, should I not have been told this when I originally took out the insurance?

No. Its common sense that to be classed as unemployed for insurance, you need to be classed as unemployed for the DSS.

Why are you not getting any type of JSA and not being classed as unemployed?

haveibeenhad

My redundancy pay takes me over the £16k capital limit, so according to the CAB advisor I spoke to, will not be eligible to register for income-based JSA, which I need to be to get help with housing costs, including insurance.

Paymentshield told me I need an ABPI1 form.

I was relatively young when I took the policy out, and didn't know what questions to ask.

It's important to me as I am beginning re-training and will probably not be able to work full-time for the next two years as a result. I am relying on my redundancy pay to cover the cost of courses (I can't get funding as I have already been to Higher Ed), and to supplement any part-time income I can get - when I eventually get another job.

dunstonh

You keep mentioning income based JSA but why are you not getting contribution based either?

haveibeenhad

I believe I will get the 6 months contribution-based JSA, will that qualify me to get an ABPI1 form? When I briefly asked at the job centre, they said that wasn't registering as unemployed.

dunstonh

That should qualify you fine. Usually its a case of getting one of the JSA that matters. MPPI/PPI is not means tested so the version of JSA doesnt matter.