Halve Your Mortgage Payment Protection Costs Article Discussion Area

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link should be
http://forums.moneysavingexpert.com/showthread.html?t=1438805

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RICH2002 wrote: »

Sorry but the above link does not seem to work.

Personally i think the mppi companies/underwriters are all having a laugh.
They rake the money in when times are good paying out very little then when times get a bit harder they whack up their premiums.
They also have the nerve to suggest lowering your cover (because interest rates have fallen and as such your mortgage payments could be lower) but what happens when interest rates go back up.

I don't mean to be pushy but it is about time the new article was released as lots of people now are being affected by this issue.

I agree with you to some point on the costing-

Martin tells me a new article is written already and will be uploaded soon

dunstonh

Personally i think the mppi companies/underwriters are all having a laugh.
They rake the money in when times are good paying out very little then when times get a bit harder they whack up their premiums.

Correct. However, they also lowered their premiums in good times. So, you cant have it both ways. Premiums were half what they were in the last recession. So a move upwards was always likely.

They also have the nerve to suggest lowering your cover (because interest rates have fallen and as such your mortgage payments could be lower) but what happens when interest rates go back up.

They havent suggested anything like that. The advisers will suggest it where appropriate as that is the job of the adviser. However, the insurer/administrator wont say a thing apart from a couple of lines in the policy conditions.

Typical

Just a word of warning. Those of you who have taken out an ASU with British Insurance - be ready for an unwelcome surprise. Both my wife and I have a policy with them because at the time they had the best policy at the cheapest price. However, I've just been told that because of recent events they need to review their charges. Most would expect that any 'review' may be within reasonable limits??? No, they have literally doubled our monthly payments - ~100% increase. Although they say that other companies are/have done the same a quick search currently proves otherwise. Normally everyone in my position would simply change insurer but of course most companies have a clause that excludes the unemployment cover for 60-120 days after changing a policy unless you've just purchased a new house. Thankfully I appear to be safe with that regard, but you never can tell and practically every day you hear on the news that another company has gone into administration - so can anyone take that gamble of moving insurer??? Does anyone know of a company that does not have this policy clause which will allow you to swap without conditions??? Any help???

rachelgaze

I took out MPP Insurance in August last year and pay a monthly premium. I have just been advised by the company that they are increasing my monthly premium as of March due to the current economic climate and increased claims for redundancy(my insurance is for sickness cover only). Is this legal- do they not have to wait a year before they increase premiums- does anyone know?

dunstonh

rachelgaze wrote: »

I took out MPP Insurance in August last year and pay a monthly premium. I have just been advised by the company that they are increasing my monthly premium as of March due to the current economic climate and increased claims for redundancy(my insurance is for sickness cover only). Is this legal- do they not have to wait a year before they increase premiums- does anyone know?

Please make an attempt to read some of the posts before you ask questions. It saves duplicating questions and answers which are already been posted.

Is this legal-

Yes it is.

they not have to wait a year before they increase premiums-

No they dont.

mic200202

Had an email recently from one of the few Unemployment cover only companies to say they were removing stand alone redundancy cover because (in their words) "if anyone is taking out such a policy there is no doubt that they intend to claim on it...." !!!??? This maybe illustrates the position of some providers to both new and existing business.

Murphs

I spoke to Nationwide on 2 Dec 08 to set up mppi (redundancy only).
The worst has happened and I am to be made redundant on 23 Feb.
I called Nationwide yesterday to be told they couldn't find my policy and it looked like it hasn't been set up.
Back in December I spoke at length to an advisor and recall going through my options, how much I would need to cover payments etc. He even said that, as a new customer, I would get 3 months free so payments wouldn't be taken until March 09.
I received a Customer Information Document detailing the cover etc with the policy number and case reference number and date of quotation.
They are calling me back hopefully today. I am at a loss as to how this has happened. My other half set up his mppi via telephone in the same way as I did.
I am worried sick that the policy hasn't been set up - even though I asked for it to be so.
Has anybody got any advice as to what I can say to them? I intend to fight this as it is clearly an error on their part.

dunstonh

I am worried sick that the policy hasn't been set up - even though I asked for it to be so.
Has anybody got any advice as to what I can say to them? I intend to fight this as it is clearly an error on their part.

I wouldnt be too hopeful. Even if they confirm it was set up but there was an error which they will ignore, MPPI plans usually have 90-120 days qualifying period for redundancy. You are not near 90 days yet.

Murphs

dunstonh wrote: »

I wouldnt be too hopeful. Even if they confirm it was set up but there was an error which they will ignore, MPPI plans usually have 90-120 days qualifying period for redundancy. You are not near 90 days yet.

The paperwork I have states that the policy will not pay within the first 60 day period. I am outside of this period so there should not be a problem with the waiting period.