Mortgage Protection Insurance Discussion

meryll83

dsharp7th wrote: »

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 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!!!

Just an update - I rang iProtect, who were coming up cheapest for me, and they said to do 2 separate policies (as they don't do joint ones) which can be for 50% of the monthly payment each, we wouldn't each have to cover ourselves for the full amount.

Hope this helps...

marshallka

Radarjet wrote: »

I have had a paymentshield MPPI policy for several years.

As my mortgage rates have fallen due to lower interest rates if I ever needed to claim on this will they reduce my amount of monthly benefit that I am paying for monthly ?

I was only allowed to take out up to 75% so still would have had bills outstanding previously, but now with the lower mortgage rates it will probably be fine now unless they can decide to reduce the benefit accordingly even though I'm paying for the original amount of cover.

Many thanks

This is also another problem we "would" have had with our MPPI as they call it now. IF we had have needed to claim would we have only been entitled to a small amount as we never reduced the amounts as interest rates were changing all the time. I just assumed as this was not actually attached to ANY mortgage as such that we would be paid the amount we had insured ourselves for???

My terms and conditions say

"monthly benefit" means the amount chosen by you and notified to us at the time you apply for cover under the policy which must not exceed
1) the amount of the monthly repayments under the agreement together with

2) an amount in respect of mortgage- related outgoings which must not exceed the greater of:
(a) 25% of the amount chosen by you under sub paragraph 1) above or
(b) your total monthly mortgage related outgoings.

I had always assumed this meant that we would get what we were insured for regardless of what the mortgage payments were to choose to do what we wanted with? I thought that we were paying for a set amount each month?

Another thought here

If you have a joint mortgage then each of you are liable for the payments. If only one is actually insured for MPPI and you cover for the full repayments of the mortgage would this then be reduced to half as the other half (which the other person is liable for) is not insured even though you have being paying for the full monthly payments to be covered? How does this work?

Nitramak62

Hi,

I'm not sure if I really need cover any advice?

Joint mortgage of £1000 a month.

Wife has worked for NHS for nearly 30 years, gets 6 months full sick pay & 12 months half after that. Not sure about redundancy terms but under statutory gets about £10K - but would assume nhs terms betters than that.

I work for Babcock transfered over from MOD with Terms & conditions (25 Years service). I get same sick terms as wife.
I applied for redundancy on complusery terms last year (when company was downsizing due to workload - didn't get it). But offer was equivalent to 3 Years wages + 6 months in leiu of notice. (100K+)

So would cover just be a waste of money given sick pay & likely redundancy payments or is it still worth it?

Any help would be greatly appreciated.

LongTermLurker

My policy with my mortgage provider has always been a monthly policy, having the advantage that the amount covered varied with my mortgage payments, and thus my requirements.

They've recently written to say they are changing to annual policies, with payments collected monthly. The only thing is that this sets a monthly benefit which is static for the year - if interest rates rise, the benefit wouldn't automatically match the cover required, which brings into question whether such policies are fit for purpose.

Is that right, or am I missing something?

Do other providers still provide monthly policies?

Northerner

Not sure why really -applied for my DH and jsut got an email so doubt they will talk to ME - have emailed to ask why we *don't meet their criteria" but its made me rather nervous!

Any advice? (IT was Iprotect as promoted on here btw)

ikr2

I have a Scottish Widows "Income Protection" policy sold to us when we got our Mortgage 10 years ago. I went freelance a few months ago and my income is very low at the moment. I can't see any point in keeping the policy as I don;t think it applies to self-employed people. Any advice?

dunstonh

ikr2 wrote: »

I have a Scottish Widows "Income Protection" policy sold to us when we got our Mortgage 10 years ago. I went freelance a few months ago and my income is very low at the moment. I can't see any point in keeping the policy as I don;t think it applies to self-employed people. Any advice?

Why do you think it doesnt apply to self employed?

Guessing here but considering scottish widows didnt do MPPI 10 years ago, chances are you have a PHI policy.

Also, the MPPI plans issued by lloyds do cover self employed. As do the majority of PPI plans. PPI not covering self employed myth exists because a minority of plans dont cover self employed.

ikr2

dunstonh wrote: »

Why do you think it doesnt apply to self employed?

Guessing here but considering scottish widows didnt do MPPI 10 years ago, chances are you have a PHI policy.

Also, the MPPI plans issued by lloyds do cover self employed. As do the majority of PPI plans. PPI not covering self employed myth exists because a minority of plans dont cover self employed.

Thanks. My problem is that my self-employed income is not alot at the moment (less than £1,000 pa). I should really call up Scottish Widows and see where I stand.

howardad

I recently received a letter from Paymentshield advising of another hike in my MPPI premium (in Feb 2009 I was paying £11, it jumped to £22 and although I eventaully received the payout my premium remained around that level it's now jumping to £35!).

So I looked at the MSE site and followed the links to iprotect, filled in a quote and was delighted when it came in at £22, filled in the application and was surprised when a pop-up appeared indicating that I didn't meet the underwriters criteria.

I work in the public sector (local/scottish government) have a good income (£37k) and a relatively low mortgage payment (£560pcm) allowing for 25% of extras I was looking for £700 of cover, back to day 1 for unemplotment, kicking in after 120 days sick.

Any idea as to why I should be turned down?

Alan

johnbhoy10

howardad-my premiums have pretty much mirrored yours. From about £11 to £36 in about one and a half years. I spoke to Paymentshield about possibly changing to another provider and they told me you need to be very careful in current climate. My own employer has issued a general letter saying we're going through a tough economic climate blah blah and i was told by Paymentshield that at least one underwriter had my company on a 'watchlist'. Cardiff Pinnacle i think it was they said.

I have changed in the past and was very careful to make sure my policies overlapped so that i was sure my new one was past it's exclusion period.

Also, i think i have read on here before that some of these providers underwrite at point of claim and NOT at start of policy. This is an important point and think it highlights how you to be totally honest and upfront with them (not suggesting you wouldn't be).