Mortgage Protection Insurance Discussion

dunstonh

they told me that i couldn't cancel it that it had to run the full 20 yr term of the mortgage, is this correct?

Unlikely. There are no mainstream products that require that.

sandspider2000

Hi all

Just wondering what anyone thinks of Vitality as an income / mortgage / life insurer?

Our financial adviser recommends them, but he does say they are more expensive than some, but provide a better service. Obviously, he gets a decent commission if we do go with Vitality, so I was just wondering if other people have had good / bad experiences with Vitality?

Thanks.

dunstonh

Just wondering what anyone thinks of Vitality as an income / mortgage / life insurer?

If you stick to the regime agreed then its fine. If you are likely to be very casual and not stick to it then go with a conventional plan.

Our financial adviser recommends them, but he does say they are more expensive than some, but provide a better service.

Service is irrelevant with things like this as all life assurance companies are generally very good when it comes to claims and that is really the only time you need (or someone else needs) to use their service.

Obviously, he gets a decent commission if we do go with Vitality, so I was just wondering if other people have had good / bad experiences with Vitality?

Is he a tied agent of vitality?
Or a limited panel or whole of market/IFA?

How much is the cost difference between Vitality and the most appropriate conventional plan?

Williamsn

Hi,


I have recently bought mortgage protection insurance. There is an 120 day waiting period. During this period there has been an adverse/negative news article regarding the company I work for and the product that they make.


Does this invalidate my policy? It is not a cheap policy so I wouldn't want to carry on paying if I'm not covered.


Any guidance would be much appreciated.


Thanks

dunstonh

Does this invalidate my policy?

Usually, if there is any hint of restructures (even if no redundancies mentioned) that is enough to make it too late to buy the policy.

When you are in the qualifying period, it is a grey area that would depend on the company in question. You would need to ask them.

Williamsn

Thanks for the reply dunstonh ��

Cyberhell

A long time ago (probably around 11 years ago) we took up accident, sickness and unemployment MPPI with Paymentshield through a financial adviser. He knew we were fairly risk adverse but still didn't point out that as we both got excellent redundancy and sickness cover from our employers (me especially as then local authority worker and for last 8.5 years in NHS) the cover was really unnecessary. Each year the premiums have gone up and we are now paying £60 and £55 respectively for cover of £880 per month. Although we shop around for absolutely everything else for some reason we've just let these run as we were under the impression it was good cover and good value. I've since done a quick quote with iprotect from the best buys on here and we can get the same cover (but for a set £847) for 12.76 per month!!!!


We are currently investigating if we have a claim for mis-selling of this PPI and I don't know whether to cancel these policies as I feel like we've been paying out unnecessarily for a long time. Does anyone know whether it would adversely affect our claim if we were to cancel these policies? I feel at such a loss as we are fairly financially astute and it feels like we've cocked up big style by taking out these and keeping them. Not sure whether to cancel and not bother with another alternative, cancel and go with iprotect or keep with Paymentshield until we get an answer on the mis-selling. Help!

dunstonh

A long time ago (probably around 11 years ago) we took up accident, sickness and unemployment MPPI with Paymentshield through a financial adviser.

A well regarded provider with good terms and not many exclusions.

e knew we were fairly risk adverse but still didn't point out that as we both got excellent redundancy and sickness cover from our employers (me especially as then local authority worker and for last 8.5 years in NHS) the cover was really unnecessary.

Redundancy is irrelevant. it does not overlap with MPPI. Sickness cover can come into play but a loss a reduced income followed by loss of income means that the MPPI could be valuable. Unemployment would be highly valuable. Even the FOS recognise this with NHS workers (and other civil service/health etc workers).

e've just let these run as we were under the impression it was good cover and good value.

It is.

I've since done a quick quote with iprotect from the best buys on here and we can get the same cover (but for a set £847) for 12.76 per month!!!!

not a surprise but you are going from a quality product with a good claims history to a budget product.

oes anyone know whether it would adversely affect our claim if we were to cancel these policies?

How long ago did you buy it? This is important as financial advisers only became regulated in 2005 for insurance. So, earlier than that, you wont be covered.

Also, you do not appear to have been mis-sold. Nothing you have said suggests any wrongdoing.

Cyberhell

It was in 2006 that we took it out

Logitec

I've neglected our mortgage protection. We extended the term of our mortgage a few years ago and we've recently borrowed more too for an extension. So we have level term protection of £388k to 2031 but the mortgage is £456k to 2038.


Should we take out a policy just for the extra borrowing for now (and take out a further policy in 2031) or should we take out a new policy for £456 to 2038?


I hope this isn't too much of "How long is a piece of string?". I will obviously do my research now but wondered if there was an obvious answer...