Halve Your Mortgage Payment Protection Costs Article Discussion Area

Thoroughlyconfused

Can anyone help with a quick query? It seems that to be able to claim under an income protection or mortgage protection policy you need to have registered as a jobseeker. It is obviously fair enough that you should do whatever you can to resume earning. However, does it mean that a claim is likely to be invalid if you have not taken up any vacancy which is offered? For example, if I took out a policy in respect of my mortgage and was offered a job with a salary which just covered the montly mortgage payment but no other living costs (eg food etc for the family) would I be entitled to claim under the policy?

IsoChick

As part of sorting the finances out :eek: I have been going through all our paperwork...

It seems we have a payment for mortgage PPI coming out every month (from PaymentShield).

This was all arranged when we got our mortgage through an IFA 2 years ago. Of course, our money problems weren't apparant then. My question is, do we need this PPI? Is it wise to cancel it? I know that if we do, our IFA will be on the phone having a go at us for doing it :rolleyes:

Both OH and I have fairly secure jobs (I work in a university and OH in a logistics business, contracted by local authorities) and we have seperate criticial illness cover etc. Unless we were made redundant for punching our MD's, we would both be entitled to redundancy pay.

It just seems that it might be another superfluous payment we have signed up to... thoughts/ideas??

Cheers!

dunstonh

As part of sorting the finances out :eek: I have been going through all our paperwork...

Answered in your duplicate thread. Please do not duplicate

irocfan

Hi All

I've been reading through large tracts of this site (and this thread in particular!:D ) and have got the following questions....

My better half is not on the mortgage but would like to investigate critical Illness/Life cover since if whe were to suffer the (hopefully!!) unthinkable the payments would be unmanagable. From what I have read on here as she works in the 3rd sector and is well covered for illness at work etc (6 months full and 6 months half pay) a 6/12 month defered IP scheme would be ideal.... how could this tie in (if at all) with a life assurance policy, and would one even be needed given that she has a death in service benefit?

For me things are a little different - no DiS, no sick pay (or statutory minimum if there is one!) so I'm looking for a MPP scheme with redundancy, CI and death cover. 30 days deferment would work nicely as would mortgage plus 25% that some seem to offer. What is slowing me at the moment is that I already have a policy (which would show a shortfall of 25% in a worst case scenario) but my efforts so far to even get a quote to increase cover isn't exactly being met with any degree of urgency :mad: .... leads me to wonder at what the response would be if I needed it, they used to be great (Cornhill as was) but if I'm having this much trouble trying to give them money....

any suggestions?

raforrester

Hi, I have PPI from the same people as my mortgage, Nationwide, but I want to move the mortgage to another lender but Nationwide are telling me if I do so the policy will be cancelled, can they do this?

dunstonh

Hi, I have PPI from the same people as my mortgage, Nationwide, but I want to move the mortgage to another lender but Nationwide are telling me if I do so the policy will be cancelled, can they do this?

If the terms of the policy state it is used in conjunction with their own mortgage only then yes they can.

kevkdg

Hi,

I've been shopping around for MPPI or even Income Protection, but when it comes to redundancy, it seems you can't claim for any period your redundancy money covers you for. For example, if I got made redundant I would get a months pay for every year of service, so 7 months. Am I correct in assuming I would have to wait at least 7 months to claim, by which time I would hope to have another job?

Are there any companies offering MPPI that don't have this clause?

Finally, is redundancy compensation the same as payment in lieue of notice?

Cheers

dunstonh

it seems you can't claim for any period your redundancy money covers you for. For example, if I got made redundant I would get a months pay for every year of service, so 7 months. Am I correct in assuming I would have to wait at least 7 months to claim, by which time I would hope to have another job?

That is incorrect.

It is payment in lieu of service. Not redundancy based on years of service. For example, you may be put on garden leave and paid. You may also find that an amount of the redundancy is classed as your wages for a certain period. Its in those cases you cannot claim until the end.

JimmyTheWig

kevkdg wrote: »

I've been shopping around for MPPI or even Income Protection, but when it comes to redundancy, it seems you can't claim for any period your redundancy money covers you for. For example, if I got made redundant I would get a months pay for every year of service, so 7 months. Am I correct in assuming I would have to wait at least 7 months to claim, by which time I would hope to have another job?

Are there any companies offering MPPI that don't have this clause?

I'm confused. Why would you want such cover?
I presume that you can currently live within your means. If you got made redundant and got 7 months redundancy pay then you would be able to live within your means for the next seven months.
So you may need a policy to cover you after this time. Or if you are confident about finding a new job in this timescale then you don't need to be paying for redundancy cover at all!

One month's pay per year of service sounds a lot to me. Are you sure this is what you would get?

kevkdg

Hi,

Thanks for the replies.

I work for HBOS and the policy is around 1 month for every year of service.

So, is that all classed as payment in lieue of service, or as my contract states one months notice, is only the pay I would recieve for this classed as payment in lieue of service?

I get a shift allowance for being on call, my redundancy package is based on basic salary only, that is why I would like MPPI.

Regards