Mortgage Protection Insurance Discussion

london

I'm not going to name names at this stage as discussions are ongoing however I wondered if anyone else has had the same experience as me.

I have been made redundant so I submitted claims to both of my MPPI providers. For ease, lets say my mortgage is £1,500/month. MPPI 1 covers me for £1,000. To top this up, I took out £500 cover from MPPI 2 therefore total cover was £1,500.

MPPI 2 agreed claim and will pay £500/month. MPPI 1 has pointed me to the small print saying they will deduct any cover for other MPPIs, so they will only pay me £500 as well (£1,000-500). Now, this makes some sense if I was over-insured but I'm not.

So, I've been paying for £1,500 cover but currently I've been offered £1,000. This is not the sort of hassle I need at this time but I must say, I'm not surprised.

This means that if you have a policy with MPPI 1 and need to increase the cover, your only options are to pay their extra, regardless of the cost, or cancel and take out full cover elsewhere. You can't have two running at once.

Comments welcomed.

Burridge60

Shouldn't be the case everywhere.

I have a customer that has two plans with the same insurer and they were happy to confirm that full cover was being provided. This must be an insurer to insurer difference and another reason why purchase of these plans is so difficult to predict a guarantee of payment on claim. It might have been prudent to contact the original insurer when you changed mortgages which I assume you did.

It is preferable to maintain existing MPPI cover as this will continue to cover you against redundancy whereas a new policy might require a period of 60 or 90 days to elapse before you are covered.

greggh

I'm on a work permit, and as such if I lose my job I can't apply for unemployment benefits. Thus I'm keen to take out MPPI, but read on this discussion board that insurers only pay MPPI if you are eligible for unemployment benefits! Rather a catch-22. I went through T&Cs for iProtect and paymentcare.co.uk but they don't mention this at all. Does anyone have any experience here? As an aside, iProtect really annoyed me, giving me one quote online and then coming back with a higher quote to actually take the insurance. Of course they include various weasel words on their web site (in fact, they were quick to point out they disclaim any responsibility in at least four different places!) and I understand there are a lot of variables, but the point is if they don't have the information to give an accurate quote, they shouldn't be giving a quote at all. What they are doing is "bait and switch," pure and simple, and I don't think they should be endorsed by MSE with such shady practices.

McFilly

If someone has MPPI which has been up and running for a while and that person's employer then merges or get taken over, so the name of the employer changes, is that something that needs to be reported to the MPPI insurer?

Meeper

I wouldn't have thought so, but it couldn't do any harm

Broke_Again

In Jan 2009 my wife and I moved property and we were advised by the Nationwide to keep our existing mortgage deal which is a variable tracker set at 0.75% above the Bank of England Base rate. However our additional mortgage would a fixed rate upto Jan 2012 of 6.13%. Given our monthly payments were going we decided to take out MPPI. However as we both work in the public sector we now find ourselves at risk of being made redundant.

My question is if we choose to combine and fix both our mortgages post Jan 2012 does that mean we need to take out a new MPPI for loss of employment? Our concern is if yes and we lose our jobs within the first 12 months the new policy might not cover the mortgage payments, grateful for your advice if possible.
Kindest Regards

mchu6am4

Hi,

I have had an income protection policy for about 4 years now through Payment Care (or Trent Services etc...Previously Adminicle, Assurant, via BritishInsurance), i.e. bunch of fraudsters who keep changing their name and doubling the policy. I have been with them for about 4 years and have not made a claim. My policy started at about £20/mth when I took it out.

I now pay about £42/mth for £1000 protection back dated to day 1 for ASU. However, I hate these guys as they are nothing but bunch of cowboys! No communication whatsoever - just keep changing names and I get to find out only when the direct debit details have changed!

I'm in full time employment - age 34 male - (quite secure job in the security industry) and have been with the same company for over four years and would like to get an alternative income protection with someone a bit more reputable!

Any suggestions most welcome please.

Thanks in advance, Ash

brambling99

I work in the public sector and am currently 'at risk' of redundancy and pretty much certain to be made redundant in the next 12 months. I've got an MPPI for my current mortage. I'm thinking of selling up and downsizing - via a smaller mortgage - now as I'd struggle with the other bills maintaining my current home. I'm wondering whether I can 'port' my MPPI as otherwise I'm potentially worse off in terms of insurance for having tried to reduce what they'd be paying out, I think.... Also, would I be wise/foolish to discuss with the MPPI company at this point ie put them on notice I'm at risk? Thanks for any wise words.

R_RICH_J

I was enquiring regarding the income or mortgage protection and the exclusions that apply. I work for the government and although my department is not closing or cutting jobs, they have advised us that we are in the unit of redundancy, in this unit of redundancy there are 1,453 staff and only 540 permanent jobs and 250 temporary jobs. To make this process fair they are in the consultation period with unions etc and we would have to re-apply for our own jobs. This will in effect start from June and last until August at which point we will receive the letters stating if we are successful or not. If we are not successful at this point we will receive letters stating we are 'at risk' of redundancy.

My question is, as it stands today can I apply for income or mortgage protection insurance as I have NOT been given a letter stating I am 'at risk' of redundancy therefore not within the scope of any exclusions?

Many Thanks

dunstonh

My question is, as it stands today can I apply for income or mortgage protection insurance as I have NOT been given a letter stating I am 'at risk' of redundancy therefore not within the scope of any exclusions?

You would expect most to exclude you as the questions asked are along the lines of "are you aware of any restructuring or risk of redundancy etc". You are and therefore you would be excluded.