Mortgage Protection Insurance Discussion

dunstonh

I think my current insurer (paymentshield) are really expensive but am struggling to find another joint policy.

They are not normally the cheapest but they dont target that end of the market. Paymentshield tend to offer terms that other providers cant or wont. They also have a good reputation on claims and are not heavy on get out clauses.

lizdew

Hello, quick question I hope someone can help with. I was made redundant at the end of last year and am heavily pregnant so not working. My husband is an engineer working for a fairly small company (100 employees). Work has been quiet for the last 8 months and after a meeting last month has agreed to go to a 4 day week for the next 6 months. I have been looking at mortgage protection insurance but will he be eligible after agreeing to a reduction in working hours as this obviously points to the business struggling?

Thanks

dcremin

Hi everyone,

I am currently in the process of arranging my first mortgage. I have been given mixed advice about mortgage payment protection and am not sure if I should pay for it.

I am a teache and so job is very secure. Health wise both my partner and I have never had any problems. I know the insurance is meant to cover the unexpected but is it worth it?

I have been offered a policy from Norwich Union. It costs £22 per month each, covering £400 (each). It will cover a maximum of 12 months. I have already seen cheaper deals on the net but these are from companies I have never heard of before so am less willing to buy from!

Any help/advice would be greatly appreciated...

dunstonh

I have been given mixed advice about mortgage payment protection and am not sure if I should pay for it.

The advice shouldnt be mixed. Whether you need it or not is a clear cut thing depending on your personal circumstances. Whether you choose to buy it is a different matter.

As a teacher, MPPI is a waste of money. you have 6 months full pay, 6 months half so you you dont need to insure yourself for 12 months (maybe a tad after 6 months but not a lot). Unemployment is a need but its unlikely to be an issue for you. So PHI is the more likely financial need in your case with maybe a standalone "U" unemployment only policy with a longer deferment if you feel the desire to have it.

m_k_dons

Hi,

I am struggling to find information about how much I need an MPPI to cover.

My g/f and I are buying a house. We have looked at all our cover available to us and decided that the only thing that we are really lacking is unemployment cover. It is more of an issue for her than me so we might not cover myself.

According to MSEs best buy we have looked at iProtect. In the box for mortgage payments do I just need to put half the mortgage as we jointly own the house? Or shall I put the full amount and they only pay half? Or if I put the full amount will they pay the full amount or will they check to see if the mortgage is joint...etc

Thanks.

Wilse

mrflib wrote: »

One thought to consider - especially in this environment - is the exclusion period at the start of the policy in which you will not be able to claim. I've done extensive research this evening on quite a few insurers. To comment on the ones in the guide:

ANT - 120 days (4 months) exclusion
Justclick - 150 days (5 months) exlusion
Abbey - 60 days (2 months) exclusion*

*In the case of Abbey if you have a new Abbey mortgage completing/completed within the next/last 30 days there is no exclusion time (i fall in this category, incidently)

It's probably obvious that the cover I'm interested in here is just unemployment.

Although importantly nothing has been announced at work regarding job losses, I just have that horrible feeling in my gut. For me I feel it's worth paying the extra to Abbey just to lower the qualifying time requirement.

If I've talked rubbish in any of the above please correct me - I certainly do not claim to be an expert.

The 60 day exclusion zone was of interest to me for the Abbey product, so I called them and was quoted £43 for £1000 cover on redundancy alone. I know there are cheaper products out there, but if you are concerned for your job and mortgage payments it might give you extra piece of mind. Be aware that they informed me that they will be withdrawing this product to non-Abbey members on Monday.

HockeyDuo8083

Do my partner and I both need to take out MPPI or is it just one of us?

We have been looking at cover for Accident, Sickness and Unemployment. Interested to hear any thoughts as we both work in industries that can be affected by the economic downturn - Me: Construction, OH: Offshore Drilling

Any help gratefully received!

KingNowt

Hi all,

I think I'm asking the same question as a lot of other people are getting at - exactly what to insurers consider as being "aware of impending unemployment"?

As HockeyDuo8083 above says, they are in industries likely to be hit by the economic downturn - I myself work in construction too, and we're seeing contracts cancelled all over the place. While my position at work is not directly threatened by the loss of these contracts (I am not assigned per-contract unlike those hired for this work), the effect it has on the company as a whole could be considered awareness of possible unemployment.

Also, my company has made a round of redundancies. However, redundancies have not been announced in our office or department (and the nature of our department makes it unlikely, although no-one is safe in these economic conditions!) and I have had a verbal assurance of my job safety by someone senior in the company. Would these redundancies be considered awareness?

I'm obviously worried about any potential unemployment (accident and sickness is not really an issue, as my sickness terms are pretty good) or I wouldn't be investigating PPI at all but am I just being paranoid with the above?

Tara3

Hi,
I've just got off the phone to Paymentshield and after 5 weeks of waiting they tell me they will not pay my claim.

I worked in construction and received a letter informing me I was redundant 3rd Nov just gone, 3 days short of the 3 month qualifying period for Paymentshield. Trouble is, yes I was made redundant, but my employer sent me to work in overseas (returning at the weekends), commencing the day after my redundancy till end of December. So because I took alternative work offered to me and had been continuously employed, I believed I had met all the requirements of Paymentshield.

I have told them I will appeal but if this can only be done through an ombudsman I doubt it will be unsuccessful. I used an ombudsman in the past and found they were not impartial. Can anybody advise? Can't really afford legal advice.

dunstonh

I used an ombudsman in the past and found they were not impartial.

The FOS is pro consumer more than firms if any bias was to be suggested.

However, from what you say, you don't have a case.