Mortgage Payment Protection

leeegglestone

Should I take this out.

Am getting a mortgage of £52K by myself
Salary is almost £16K
and iwll love alone and so not really another income
Have looked into it and found helpupay

Was wondering if i should get it or another one that would just pay out the mortgage or if its worth paying a higher premium but having a percentage more paid to cover some of the Bills

In the event I lose my job,accident, sickness etc

Any advice

thanks

Lee

cattie

You just never know what terrible things fate may have in store for you as I myself found out all too well. How thankful I was to have had a mortgage protection policy in place.

If you can afford to pay a bit more on a protection policy that will also give you an amount towards essential living expenses as well as the mortgage then do.

A policy that will cover you in case of sickness is something I'd also encourage, finances allowing.

savt

I completly agree with cattie payment protection if u can afford it was a life line 4 me when i was made redundent. It took me 6 months to find a new job without payment protection I would have been in real trouble.

MortgageMamma

The mortgage payment protection is essential in my view unless you have an accurate crystal ball. There are companies offering 25% on top of the mortgage payment amount for nothing and also giving first time buyers 6 months free cover. Make sure you have accident sickness AND redundancy if you are an employee and nothing less. check how long your employer would keep you on full pay in sickness first, work out your redundancy entitlement (if any) and set your defferred period to match, there are plenty of policies out there, some much cheaper than others and some with better levels of cover so make sure you are well advised and shop around.

bigdec

savt wrote:

I completly agree with cattie payment protection if u can afford it was a life line 4 me when i was made redundent. It took me 6 months to find a new job without payment protection I would have been in real trouble.

i would also advice getting payment protection as it does take the worry when you need the help but make sure that you shop around for the best deal and check the small print as there are various exclusions

leeegglestone

Is this ok thru helpupay
for mortgage of £286
its £5 a month to cover that

for 25% extra cover
it is £14

found thru moneysupermarket.com

Are there any others available cheaper?
do i avoid those which have an excess of 30-60days and choose the one which offers cover from the same day.

leeegglestone

where can u find 25% free of charge,
plus 6months free for a first time buyer?

MortgageMamma

Paymentshield offer 6 months free to first time buyers, + 25% extra cover for free, also, whether you choose 30 60 or back to day one defferred periods depends on how long your employer would pay you should you be off sick/accident, and also to any entitlements you may have upon involuntary redundancy and your current level of savings. (you normally have to work for two years for a weeks pay redundancy I think).

Look into this before you make a decision, and also compare what is and what is not covered on different policies. Unfortunately I'm not sure you would find many advisors willing to take this on solely, as we make next to no money on mortgage payment protection. Remember as well mortgage payment protection only covers you for 1 or 2 years (dependent on the policy) should you make a claim and then it stops. If you took permanent health insurance (which is a little more expensive but better cover) it would cover you until retirement. You could then take additional redunancy cover at a lower cost to cover for that eventuality.

HTH

leeegglestone

Work will give me 6 months full pay, 6months half pay. so this mean a 60 day period would be ok.

Redundancy is a rubbish £400 odd quid

Where can u get a quote for paymentshield, i tried google

I did find WWW.PROTECTIONONLINE.CO.UK who give 3 months free cover
and you can choose the exact amount of money cover you would like.

MortgageMamma

you can get paymentshield quotes through most advisors, well the whole of market ones anyway. its a quick process and shouldn't cost you anything. you could well have a longer deferred period if they are your benefits.

HelpWhereIcan

leeegglestone wrote:

Work will give me 6 months full pay, 6months half pay. so this mean a 60 day period would be ok.

In fact, it will probably mean that a 60 day deferred period is too short for anything other than redundancy cover.

Most MPPI policies will not pay out if you are still receiving an income from your employer.

As you are so well looked after by your employer for the first year, I would consider looking at Permanent Health Insurance (PHI) to protect your income once work stops paying you. This is an income protection plan that will pay you a regular income if you are unable to work thrugh illness or accident. The main difference between MPPI and PHI is the amount of time they will pay out for. Most MPPI policies will only pay out for 1 to 2 years, whereas PHI could pay out until your chosen retirement age, you die or you return to work (whichever is earlier).

Because you could set up a deferred period of between 6 months and one year, you will find the premiums competitive compared to Accident and Sickness only MPPI and the cover substantially better (subject to your medical history, occupation etc of course). I would suggest you speak with an independent adviser (IFA or Mortgage adviser who is also a protection adviser) to weigh up the benfits of MPPI v PHI for you.

Sorry to muddy the waters here, but it is important you make the right choice with things like this and I suspect that MPPI (particularly if you have no need for redundancy cover) could be a mistake for you.

Hope this helps