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Mortgage payment protection
mruddy
Posts: 25 Forumite
Hi
I was hoping for a bit of advice. I have just purchased a new home and should be in within teh next few weeks. We are now looking at insurance and have taken out life and critical illness. However, i work for a local authority and am on a fixed term contract until March 2010. I am pretty confident that my contract will be renewed for another 4 years but will not know until February time. Will this restrict me from qualifying for income protection and mortgage protection. Any info would be gratly welcomed.
Thanks
I was hoping for a bit of advice. I have just purchased a new home and should be in within teh next few weeks. We are now looking at insurance and have taken out life and critical illness. However, i work for a local authority and am on a fixed term contract until March 2010. I am pretty confident that my contract will be renewed for another 4 years but will not know until February time. Will this restrict me from qualifying for income protection and mortgage protection. Any info would be gratly welcomed.
Thanks
0
Comments
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Hi
I was hoping for a bit of advice. I have just purchased a new home and should be in within teh next few weeks. We are now looking at insurance and have taken out life and critical illness. However, i work for a local authority and am on a fixed term contract until March 2010. I am pretty confident that my contract will be renewed for another 4 years but will not know until February time. Will this restrict me from qualifying for income protection and mortgage protection. Any info would be gratly welcomed.
Thanks
Hi
Your job shouldnt affect your ability to obtain income protection in the event of sickness (make sure it is income protection rather than ASU or MPPI).
Redundancy may be an issue as you are on a fixed contract rather than being full time employed.
The only thing to watch:
- if you fall ill whilst working the definition for a claim should be your ability to do your own occupation, if you cant do your occupation the policy pays out.
- if you fall ill whilst between contracts the claim will normally be assessed on some kind of house persons benefit as you wont be working. This will be typically functional tests like being able to walk, lift, carry, etc, and can be difficult to claim on.
Go for income protection (IPI) above CIC typically. IPI protects your ability to work, if you are off work for 25 years it will pay for 25 years, CIC covers very specific conditions and if you are off work and its not critical then you get nothing.
Given you are on a contract do you get sick pay or possibly a small amount of sick pay? Having a mortgage you always need to make the monthly repayments, IPI will cover this and CIC typically wont.0 -
Hi
Thanks for your comment, at present i am working for a local authority therefore if i was to fall sick i get full pay for 6 months then a reduced rate. I am not worried about losing money if i fall ill, i am more concerned if i lose my job in april. does the fact that i am on a fixed term contract affect my ability to qualify for mortgage protection?
Thanks0 -
You can get redundancy cover as a contract worker... there are a few T&C's.
It's a bit of a minefield thought finding the right policy.
If this is all you are after then go online, find and speak with an independant insurance broker and if they are worth their salt should be able to find something quite easily.0 -
Thats great, thanks for your replys.0
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