Mortgage Protection Insurance Discussion

Daves902

dunstonh wrote: »

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.

I am currently working with an organisation that has both public funded contracts and commercial activities. It has been announced that we have lost a contract at the end of the year. At present we have received no formal notice of redundancies however there has been an announcement of a staff meeting in June.
Many have jumped to the concllusion that this will form the foundations for a structured job cull across the business.
Some areas of my job though fall within the commercial activity and I would feel comfortable saying that I consider my position to be safe - My question is though, with all this going on do you think policy providers would look to exclude me?

Many thanks...

dunstonh

Some areas of my job though fall within the commercial activity and I would feel comfortable saying that I consider my position to be safe - My question is though, with all this going on do you think policy providers would look to exclude me?

If I had a client in your situation I would disclose that to the insurer and get confirmation in writing that it is not an issue (assuming they say they would cover it). If in doubt it is always best to declare and let the insurer decide. That way you dont waste money on something that isnt going to pay out.

jasonart

I am about to go self employed, so I was wondering if there was anypoint in actually paying my payment shield mortgage protection any more. Or if in fact it would even pay out on self employed customers?

Perhaps a health insurance policy would be a better option to spend my money on?

REALLY APPRECIATE ANY ADVICE

SusanBetts

Hi - my mortage repayment is £138 per month and i have two part time jobs, working 34 hours in total. i am considering taking out MPPI but wonder whether a policy would cover me for redundancy/sickness for both jobs or would i need to have a separate policy for each job?
Thanks in advance!
Sue

dreamon100

Buy to let

Hi, my question is, is it possible to get MPPI on a buy to let mortgage? If so from who, I've googled it but the point became lost.
This would be to cover the difference between the rental income and the monthly mortgage payment, as it's a long term investment.

dunstonh

Hi, my question is, is it possible to get MPPI on a buy to let mortgage?

Yes. You can get PPI for a BTL.

If so from who, I've googled it but the point became lost.

Any local IFA and most mortgage advisers.

Feebs

Hope someone can help.

My partner died last october and I have spent the last few months sorting out my financial future. I have paid a bulk sum on my mortgage and my remaining mortgage is £57,600. My new Financial Advisor has just sourced a new mortgage for me which will cost me £418 per month (compared to my previous interest only £766) !!. I would like some mortgage cover but am unsure where to go for this. I have worked for the public sector for 4 years and have already taken 2 months sick pay (due to death of partner), so not sure how much more cover I have.

My FA told me he is quoting for policies that would give me £800 each month, after the first 8 weeks of incapacity. This 8 week period will be covered by continuing pay from work/emergency cash funds. He reckons BUPA are cheapest with a premium of £46.07. He said that obviously the £800 benefit is much higher that just my mortgage, because ideally it should incorporate my normal monthly expenditure so that I can survive comfortably in the event I can't work due to accident or sickness.

£46.07 sounds an awful lot to me. Can anyone offer me any advice.

Many thanks in anticipation

dunstonh

Feebs wrote: »

Hope someone can help.

My partner died last october and I have spent the last few months sorting out my financial future. I have paid a bulk sum on my mortgage and my remaining mortgage is £57,600. My new Financial Advisor has just sourced a new mortgage for me which will cost me £418 per month (compared to my previous interest only £766) !!. I would like some mortgage cover but am unsure where to go for this. I have worked for the public sector for 4 years and have already taken 2 months sick pay (due to death of partner), so not sure how much more cover I have.

My FA told me he is quoting for policies that would give me £800 each month, after the first 8 weeks of incapacity. This 8 week period will be covered by continuing pay from work/emergency cash funds. He reckons BUPA are cheapest with a premium of £46.07. He said that obviously the £800 benefit is much higher that just my mortgage, because ideally it should incorporate my normal monthly expenditure so that I can survive comfortably in the event I can't work due to accident or sickness.

£46.07 sounds an awful lot to me. Can anyone offer me any advice.

Many thanks in anticipation

Is the adviser quoting PPI or PHI?

I doubt Bupa are the cheapest but they would be expected to be higher quality than the cheapest. Perhaps you need to tell your adviser that you do not want quality but want cheapest. He can then adjust the research.

handytips

This is definately not the cheapest ASU cover. Assurant are very competetive, however i would get a broker to arrange it for you rather than do it yourself, £800 cover per month should cost no more than £32 and that is back to day 1 cover. He may however be quoting you Income Protection which is a totally different insurance to that of Accident Sickness and Unemployment cover.

kingstreet

Is the cover accident and sickness cover only, or has he included an element of unemployment cover?

I guess he hasn't, otherwise there'd be mention of more than one company. Is unemployment something you feel you should cover? How would you pay your bills and maintain your standard of living if you lost your job?

Working in the public sector for four years, you should receive three months full pay, followed by three months half pay, in the event of sickness. After seven years, this will increase to six months full pay, followed by six months half pay. Check your entitlements before you make any firm plans.

Having three months full, three months half, means you can defer the payment of any income benefits from your new policy for six months. This should give you premiums towards the cheaper end of what's available, particularly if you do a white collar job. In a few years time, you'll want to change to a twelve month deferred period to reduce the cost further.

Examples - Female £800pm, to age 65, Non Smoker, Class 1 occupation, 6 months deferred, premium range;-

30nb - £19 - £22 per month
35nb - £24 - £28 per month
40nb - £31 - £35 per month
45nb - £43 - £46 per month
50nb - £54 - £61 per month

Hopefully, these examples will give you an idea of what's realistic for your circumstances. Ensure your adviser is giving independent financial advice, so you get the best combination of price and product.