Halve Your Mortgage Payment Protection Costs Article Discussion Area

judy2357

MortgageMamma wrote: »

Shouldnt really matter as if you are claiming benefits ANY income that you get for any purpose has to be declared to the DWP, Not suggesting you would do that by the way, just giving facts.

Is this correct, as if the payment goes straight to the lender it isnt being paid to you to spend as you want. Im interested because we have been paying a MPPI policy to the Halifax since April (only about £12 pm) and are on Working tax credit because my partner gets the disability element. Have looked on the HM Revenue site and it appears that they ignore the first £300 of some types of extra income. Does anyone know the precise facts here??

judy2357

For those of you that are interested, following my thread above, I have contacted the HM Revenue & Customs and spoke to a lady enquiring about if our Halifax Mortgage Protection policy paid out in event of unemployment would our Working Tax Credit be effected. She consulted her line manager and returned my call to say:-

"If used for mortgage payments it is not classed as income". She said that the payment would go into our bank account and the mortgage payment would come out of the account so therefore would be paying the mortgage. I have made a note of her name and the date just in case the position should ever arise.

dunstonh

judy2357 wrote: »

For those of you that are interested, following my thread above, I have contacted the HM Revenue & Customs and spoke to a lady enquiring about if our Halifax Mortgage Protection policy paid out in event of unemployment would our Working Tax Credit be effected. She consulted her line manager and returned my call to say:-

"If used for mortgage payments it is not classed as income". She said that the payment would go into our bank account and the mortgage payment would come out of the account so therefore would be paying the mortgage. I have made a note of her name and the date just in case the position should ever arise.

That is correct. However, you cannot insure yourself for more than your income. Typically no more than 75% of your income.

blueperil

re the article, antinsurance have doubled their premiums recently, so the page needs adjusting..

are there any other income protection companies or is mortgage protection the best option now..

JimmyTheWig

Yes, I was going to say something similar. Having had a policy with Ant for about a month they have dramatically increased my premium.

Obviously I could cancel the policy and gte more quotes, but who's to say that the next people I choose won't up their prices in a month's time?

I read the following in another thread...

dunstonh wrote: »

The article that refers to ant insurance as a possible option for you to consider is out of date. Ant insurance have been massively increasing premiums in the last week. I would disregard Martins articles on product providers as things tend to change quicker than the articles can keep up.

So will this article be updated or scrapped?

Earlier on in this thread dunstonh warned me (post #51) that the savings I had made sounded too great. Looks like he was right.


If Martin's article _isn't_ the best way to approach this issue, what is?

dunstonh

Articles are often a bit slow to be updated. The pensions one is out of date by almost 6 months now (the product mentioned in that was withdrawn in Feb).

I noticed that the other company mentioned in Martins article on ASU is British Insurance. However, their ASU/MPPI policy excludes chronic long term illness. Thats a pretty major exclusion on an income protection policy.

francescap

I am getting so confused with all of this! We have a joint morgage of £170K. We are ditching our CIC mortgage cover and getting separate ASU policies (found a very good deal online). However Norwich Union say we can’t cancel the CIC without losing the Life Assurance, so we have to get new Life assurance quotes. Single life assurance seems to be a better, more flexible option, but what advice I can’t find anywhere is if we take out single policies, can we just insure for half the mortgage value (so £85K each)? So if one of us dies half the mortgage is paid off, or if we both go together the whole thing is paid off. Can we do that? I’ve not seen anywhere that says we can’t. But by only insurance half the value on a single policy will that invalidate the policy? Confusing!! Help!

dunstonh

We are ditching our CIC mortgage cover and getting separate ASU policies (found a very good deal online).

Why are you doing that?

CIC plans cover totally different things to ASU plan. Plus the claims stats are better for CIC than ASU.

Single life assurance seems to be a better, more flexible option

not on a mortgage it isnt. Its more expensive and a waste of money.

can we just insure for half the mortgage value (so £85K each)?

Yes. Although that wont really help much in the event of death as only half the mortgage is cleared. The other stil has half the debt and the cost difference on life assurance between two single life plans and joint life first death will be minimal.

*MF*

Hi ... unless there are conditions that specifically require you to insure in a fixed manner, then you are free to proceed as you and your partner decide imho.

Were it me I would be looking for a policy to cover the whole mortgage at £170k, arranged on a joint life basis - with the payment being made on 1st death.

I am not up to date on costs - but I would have expected that to also be reasonably cost effective - but there are other members (*) who I would think are more on the ball than me over costs.

Hope this helps a bit ...

* Edit - one of whom has just posted above

RICH2002

Following Anti insurance (well some of their underwriters) increasing (doubling) their premiums. I Would now be paying more than the original policy i had with my building society. I got another quote from their( anti insurance) website and although more than my current premium it is still substantially less than the increase.
I phoned up my current provider to find that my policy is with Assurant solutions and not Anti insurance and told them that i can get a cheaper policy through the same website as i used before strange EH.
They did not seem too bothered by this.
I will certainly be changing my policy and only time will tell if all the other companies decide to increase premiums in the same way.
Hopefully Martin will update his thread on this matter sooner rather than later.
Rich