Mortgage Protection Insurance Discussion

scottyglos

i have a policy with the Woolwich mortgage care 2 Disability and unemployment benefit so when i was diagnosed with cancer almost two years ago they paid out for 11 months ( was not told this when they sold it me i thought it was to help if anything ever happened no time limit was mentioned when i signed on the dotted line ) but they paid out for the 11 months and i have been struggling to pay there monthly premium ever since in the hope i would get back to work but now work are terminating my contract on the grounds of incapacity . Can i now claim the unemployment benefit from them ? even though i have not been back to work since the first claim .

any help would be welcomed
cheers scotty

Annie_Day

We've been looking at our finances over the last week, and were looking at the insurance which we took out when we changed the mortgage over in 2006. It would seem that the life insurance, critical illness cover and family income cover seems to be fine. We were also advised to take out MPPI. Apart from this separate policy costing £25 per month (which after reading the articles on MSE seems a little steep) I am wondering if we still need it. My husband works full time as a teacher, employed at the same school for nearly 8 years, with good sick pay terms, and if ever being unemployed, I imagine he would get supply teaching quite quickly. We have nearly 50% equity on the house, and would also get a death in service pay out if he died.

I know it's our decision to make, so I'm not really asking should we cancel the policy, however, if we think we were mis sold it, how easy would it be to claim the money back?

KatyStrike

I've been reviewing the finances given the current squeeze and noticed I am paying £32 per month for MPPI.

I took out my mortgage about 4 years ago with the Woolwich and at the time they told me it was a condition of having a mortgage with them that I took out MPPI although they did say it didn't need to be with them.

I just read on MSE that my policy may be optional. It does look like a very comprehensive cover including sickness and unemployment however my employer gives me 6 months full pay and 6 months half pay as well as a generous payout if I die while still employed by them that would cover my mortgage and more. I also can't see anything in my mortgage paperwork that says I must have MPPI.

Have I been mis-sold and should claim my money back?

dunstonh

although they did say it didn't need to be with them.

They dont need to and why would they?

Have I been mis-sold and should claim my money back?

Nothing you have said indicates any mis-sale.

The_J

You'll have to prove that they said it was a condition of the mortgage, that's the only mis-selling part. I wouldn't put it past them insinuating it but I doubt it will be written down.

givenupwork

payless wrote: »

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

I have 2 policies as written already somewhere in this thread. It never occured to me that if something happened that they would not both pay out. My second insurers knew I had another but this only over the phone and not mentioned in the policy. If this is right - that they wouldnt both pay out???(is it?) then it would make me even more inclined to cancel them.

Any one any thoughts:(

holly_hobby

PHI max benefit is capped at circa 60% of earnings (lower for higher earners) = the total sum payable will be a cumulation of all income from all sources during the claim period (ie all PHI, ASU policies and employer/state benefits) - in essence they don't want you to be financially unaffected or even better off by not working, and "choosing" to make a continous claim by never "recovering" (sure you understand what I am inferring), and not returning to work, with the policy continuing to pay until NRA or death.

So yes, payment will be capped if you have 2 or more live policies providing same or similar benefits that you will claim during illness, so you may wish to revisit your current provision (taking account of your waiting periods alongside when employer benefits kick in, reduce or cease), and amend your current provision as necessary (if unsure how to proceed an IFA will gladly assist).

Hope this helps

H

Thrupnybit

Reviewing our policies, it looks like I may be paying out for things I don't need. I work part-time, permanent job in public sector, so six months sick leave on full pay. Currently have mortgage protection (unemployment and sickness) (c£15 per month) and oldish policies for decreasing life cover + critical illness (combined payment c£47 per month). We have a small mortgage which we could pay off if necessary and I'm about to take out new life cover which would pay off mortgage (replaces life cover under old endowment policy).

From what I've read here, I don't think I need the decreasing life cover or the sickness element of MPI, probably not the unemployment cover but I'm unsure of the critical illness element. From looking around, I think I could get unemployment and critical illness cover to last until I can retire at 65 rather than mortgage term, for around the £62 currently paid. But I want to make the right decision. In good health but would like to retire or possibly go self employed before 65! Any views?

amjed_afzal

I need your help as I am a little confused
I have just taken out an £81,000 mortgage and would like totake out mortgage protection if I am out of work or ill to pay for my mortgage.

Is there a protection for this including life cover or is ittwo different things?

Thank you for your help in advance.

amjed_afzal

I need your help as I am a little confused
I have just taken out an £81,000 mortgage and would like totake out mortgage protection if I am out of work or ill to pay for my mortgage.

Is there a protection for this including life cover or is ittwo different things?

Thank you for your help in advance.