Halve Your Mortgage Payment Protection Costs Article Discussion Area

JimmyTheWig

dunstonh wrote: »

A difference that big suggests you are not getting like for like cover.

Common errors on this are different deferment periods, budget plans replacing comprehensive or even worse, replacing a PHI with an MPPI.

Thanks for the warning, but I think the issue is that I over-played my savings. While what I said was true, it was only just true.

Was paying £81 a month with Abbey for £1450 monthly benefit.
Am now paying £40 a month for £1600 monthly benefit.

I.e. it is a small increase in cover and only slightly less than half the premiums.
Do you think that this is too good to be true?

dunstonh

Was paying £81 a month with Abbey for £1450 monthly benefit.
Am now paying £40 a month for £1600 monthly benefit.

I.e. it is a small increase in cover and only slightly less than half the premiums.
Do you think that this is too good to be true?

Bank products are expensive so you would expect a saving. If its a really old MPPI then that sort of difference is possible. If the Abbey one is more recent then I wouldnt expect that much. More like £20-£30.

candlewax_2

Hi

My husband and I retired18 months ago, I am 60 and my husband will be 65 in Dec. 2008. My question is, we are paying £59.57 a month for mortgage payment protection, should we be paying this as we are no longer employed? Should we have life cover/sickness insurance instead?

We took this policy out with our mortgage 9 years ago in the belief that we would not get the mortgage if we didn't.

I would appreciate any advice as this is a minefield.

Thanks

JimmyTheWig

No point having unemployment cover if you are not employed.
(Presumably you both retired voluntarily - if not you could claim on the policy you have!).

You may be able to get accident and sickness cover, but what would you be covering yourself for? If you get sick, you still get your pensions. Mortgage Payment Protection is to ensure you still get an income if anything goes wrong.
I don't think you need this at all.

You will still, presumably, need life cover. If one of you dies, will the other one be able to pay the mortgage?
You could also look at critical illness cover, but I believe this is expensive and complicated.

candlewax_2

Thank you for taking the time to reply. We appreciate it and will be seeking further advice about life cover.

knapdarlich

Hi,

I've been looking into Income Protection Insurance for myself and have come across a crew called i:protect insurance - I came across them via the "Thisismoney" (daily Mail) website. They appear to offer IP insurance that is significantly cheaper even than Best and Antinsurance. Has anyone any experience of them or any commentary on who they are etc?

Much appreciate any replies.

Thanks.

dunstonh

knapdarlich wrote: »

Hi,

I've been looking into Income Protection Insurance for myself and have come across a crew called i:protect insurance - I came across them via the "Thisismoney" (daily Mail) website. They appear to offer IP insurance that is significantly cheaper even than Best and Antinsurance. Has anyone any experience of them or any commentary on who they are etc?

Much appreciate any replies.

Thanks.

It just looks like your standard budget payment protection rather than full income protection. Cheap and cheerful and useless for a lot of people (not aimed at that provider but the product type). If you want proper income protection then you need to be looking at permanent health insurance and not payment protection.

floweriepower

I'm currently self employed and would like to protect my mortgage/personal loan against accident or sickness. Would like an affordable policy ideally to cover me and my financial commitments. Please can you advise?

dunstonh

I'm currently self employed and would like to protect my mortgage/personal loan against accident or sickness. Would like an affordable policy ideally to cover me and my financial commitments. Please can you advise?

Its not advice as the board is not authorised to give advice in regulated areas like this. Its discussion only....

Permanent health insurance is the type of policy you are looking for.

Logsy

When I took out my Nationwide mortgage in 1997 I was required to take out their scheme for maximum advance payment. Is this the same as MPPI? and can building societies insist you take out this cover?
Many thanks
Joanna