Mortgage Protection Insurance Discussion

sertis2511

Income Protection
I was recently made redundant, fortunately I had taken credit card protection and also an income protection policy. I have duly made the claims with the relevant DWP Job Seekers allowance ABI forms etc sent off. The credit card companies have accepted my claim and are currently paying 10% of the oustanding balance directly into my credit card accounts , 3 credit card accounts approximately £15000 outstanding and so £1500 per month be paid to the credit card accounts. My Salary prior to redundancy was £2000 per month and I had cover of upto £1500 with an income protection policy, the insurance company - Ant Insurance with whom I have my income protection policy ( taken out over a year ago) are refusing to pay anything to me stating that as I am getting £1500 from the credit card insurance I cannot claim on the income protection. Is this correct?
I am deeply aggrieved at this as I do not see any of the credit payments as they go directly to my credit cards accounts, the whole point of the income protection was to cover my mortgage and essential living expenses. My minimum payments on my credit cards was usually 2% but the credit card insurnace cover pays 10% which I certainly cannot complain about but it seems getting 10% on my credit cards is effecting my income protection.
I intend taking this matter to FOS as I feel I am being misled and this is just an excuse the insurance company not to pay up. Any guidance would be greatly appreciated.

dunstonh

Ant Insurance with whom I have my income protection policy ( taken out over a year ago) are refusing to pay anything to me stating that as I am getting £1500 from the credit card insurance I cannot claim on the income protection. Is this correct?

You are only allow to protect yourself up to 75% of your income (many providers stop at lower figures). This is a combination of all your policies and payment protections, waiver of premiums on pensions etc. So, if the £1500 is around the 75% mark then yes, they are correct in refusing your claim.

I am deeply aggrieved at this as I do not see any of the credit payments as they go directly to my credit cards accounts, the whole point of the income protection was to cover my mortgage and essential living expenses.

Then you should have taken out MPPI and not PPI (MPPI does not go towards the 75% unless it exceeds your mortgage payment). You should also have read the text of the policies you purchased.

I intend taking this matter to FOS as I feel I am being misled and this is just an excuse the insurance company not to pay up. Any guidance would be greatly appreciated.

The FOS cannot overule the Govt limits.

You were also not misled as Ant dont provide any advice. You chose to do away with advice and save a few pounds. In which case you take on the liaiblity for making sure what you buy is correct for you.

It is a risk when you buy without advice as you get less consumer protection. You also have to know what you are doing.

Radarjet

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

dunstonh

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 ?

Yes. they will only cover your mortgage payment plus the x% you nominate for insurance. You should inform them of changes in the mortgage payments so they can adjust the sum insured and the premium. You must remember to do the same when it goes up as well. Its worth sticking a note in the diary to do this once a year.

Radarjet

I feared as much. Many thanks.

Thats a phone call to make today then. It will reduce my premiums but still I'll not be covered for other essential expenditure eg utility bills, etc

Is there another insurance I should consider that would cover those please ?

Many thanks

moonflower_2

I had a policy with Payment shield taken out in2004,It was a mppi and I became redundant, however I had been off sick with a auto imune disease (rare) .

I made a claim with Payment shield only to be told that as I could not produce a JSA confirmation they would not pay out.

I was unable to work through illness, at the time I could hardly walk. I was classed a disabled and still could not claim as I could not prove that was in reciept of JSA!!

I then cancelled the insurance as soon as I knew that I would never be able to claim.
I have now applied to re claim my payments,what do you think.

dunstonh

moonflower wrote: »

I had a policy with Payment shield taken out in2004,It was a mppi and I became redundant, however I had been off sick with a auto imune disease (rare) .

I made a claim with Payment shield only to be told that as I could not produce a JSA confirmation they would not pay out.

I was unable to work through illness, at the time I could hardly walk. I was classed a disabled and still could not claim as I could not prove that was in reciept of JSA!!

I then cancelled the insurance as soon as I knew that I would never be able to claim.
I have now applied to re claim my payments,what do you think.

Was yours an MMPI/PPI or was it standalone unemployment cover?

To reject a sickness claim on the grounds of unemployment would be strange.

rossyl

Hi,

I am on a two year fixed term contract. i am unsure if it will get renewed when it ends in October.

http://www.justclick4cover.com/ excludes "Temporary or seasonal unemployment or expiry of non-renewable or fixed term contracts."

So I don't believe this is the right one for me.

Can anyone recommend a company that will provide MPI, for unemployment, that covers fixed term contracts.

Also, I have a tracker mortgage, so my rates are currently very low. but is it worth quoting the max amount, say £1,500, so that if rates rise i am covered?

My mortgage is £160,000

Radarjet

Thanks Dunstonh,

I have called up and just as you said I have ammended the mortgage protection and increased the insurance bit which overall will reduce my premium a bit.

The lady on the phone said that they reckon over 75% of customers never phone in to amend the policies and so are all currently paying higher premiums for amounts they will never receive since interest rates decreased, as they liaise direct with the mortgage people to ensure no extra money is claimed for.

She also said they do not have any policies that would insure for utility bills/ council tax and other 'must pays' as the additional 25% won't touch them, but to research an 'income protector' policy.
Anyone any experience of taking out or claiming on one of those ?

Many thanks

payless

Believe they will go to upto 33% extra , but this change ( unless already part of the clients original application) will invoke the 90 day exclusion on extra