We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Mortgage protection

Do you think it is worth getting? Do they really ever pay out? If the insurer thinks you are likely to suffer from anything then it seems they will up your premiums anyway, so would you have better security by banking the money?
All thoughts appreciated.

Comments

  • dunstonh
    dunstonh Posts: 120,150 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Can you clarify what you mean by mortgage protection?

    Is it life assurance, critical illness, budget payment protection of full permanent health insurance?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Taylo_2
    Taylo_2 Posts: 194 Forumite
    Protection is worth the money if you have to make a claim, same as any insurance. If you pay £20 per month for the cover but it pays out £100k when you have to make a claim after 5 years would you have been better to bank the £240 per year or pay the premiums and get £100k? You ideally could do with speaking to someone who can explain exactly what is available and what would be best for your needs (as dunstonh points out above) but in essence having protection is better than not having protection - if they load your premium it is because you are more likely to make a claim not because they are trying to make more money out of you...
    Paying it off one debt at a time!
    B&Q £12.40 / £93.11
  • Wutang_2
    Wutang_2 Posts: 2,513 Forumite
    mahoney wrote: »
    Do you think it is worth getting? Do they really ever pay out? If the insurer thinks you are likely to suffer from anything then it seems they will up your premiums anyway, so would you have better security by banking the money?
    All thoughts appreciated.

    Are you talking about life insurance? The life insurance you applied for?

    It is worth getting because if one of you were to die from (for example) high blood pressure - one of you is left with quite a debt.

    Yes, the premiums will increase if there are existing or previous conditions but an IFA will find the best way forward in these circumstances.

    Banking the money is also a really good idea but it might not be enough to pay the outstanding mortgage amount. It might not be enough to pay much actually. Maybe a new lawn-mower.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • mahoney
    mahoney Posts: 377 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Morning all. Sorry for not being clearer. I'm referring mainly to critical illness cover. The premiums seem so high - due to age and medical history...Life insurance monthly payments are not so high. I think for OH (who I mentioned in a different thread), we may be able to reduce the premiums by insuring a lower amount - ie not full value of the mortgage. Not ideal, I know, but at least it's some protection. I'm thinking about 50% of mortgage.

    Can life and critical illness be done by 2 seperate insurers? - life by one and CA by another?
  • koexelek
    koexelek Posts: 7,847 Forumite
    mahoney wrote: »
    Can life and critical illness be done by 2 seperate insurers? - life by one and CA by another?

    Yes, but it normally works out cheaper to do the two combined
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245K Work, Benefits & Business
  • 600.6K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.