Halve Your Mortgage Payment Protection Costs Article Discussion Area

JimmyTheWig

dunstonh wrote: »

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 The pensions one is out of date by almost 6 months now (the product mentioned in that was withdrawn in Feb).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.

Thanks.

So unless the MSE team are reading this and are about to update the article, how would you suggest someone finds the right policies to cover a loss of income due to accident, sickness or redundancy?

francescap

dunstonh wrote: »

Why are you doing that?

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



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



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.

Looking at the advice on this article it states that single life assurance plans may be more flexible - if one person dies it means the other is still covered, and also if you happen to go your separate ways you are both still covered (we aren't married). Also for our own personal circumstance I see ASU as a lot more beneficial than CIC - if we are both in traction for 6 months following a car accident at least the mortgage will get paid, this won't happen with CIC - and with CIC it willl only pay out if you get one of the terminal illnesses listed, if you get a different one then it useless - at least ASU will still pay out whilst you are in hospital dying, and when you kick it the life assurance will pay it all off.

Thanks for ther advice guys, I've got a lot of thinking to do!!

dunstonh

Looking at the advice on this article it states that single life assurance plans may be more flexible

This site doesnt give advice on regulated areas. A single life plan is no more flexible than a joint life plan.

if one person dies it means the other is still covered

Correct. However, whats the point of that for mortgage protection?

and also if you happen to go your separate ways you are both still covered

at which point you are single and not financially liable on each other.

(we aren't married).

Another good reason for joint life first death then.

Also for our own personal circumstance I see ASU as a lot more beneficial than CIC - if we are both in traction for 6 months following a car accident at least the mortgage will get paid, this won't happen with CIC - and with CIC it willl only pay out if you get one of the terminal illnesses listed, if you get a different one then it useless - at least ASU will still pay out whilst you are in hospital dying, and when you kick it the life assurance will pay it all off.

Although if you get a CI the ASU wont pay out unless it keeps you off work in the short term (long term is often excluded). The better option here is a PHI policy.

CM1_2

My first post on the forum.

I also received a letter from Assurant solutions saying that as of September my premiums are increasing by over 100% after only being with them for less than six months!!!

Whilst I can appreciate that cost are rising due to the economic climate an increase of that proportion seems rather high.

I think another look around is on the cards

cmjennings21

I'm enquiring on behalf of my father who has suffered ill health for a number of years now. Despite this when last remortaged his house he was offered mortgage protection which he initially declided because he'd had a heart attack. He was told by the advisor that this didn't need to be declared as medical history wasn't considered as part of this policy, subsequently he signed up for the insurance. Within the last couple of weeks, following another bout of illness he's filled a claim against the insurance which has been declided as he'd had a heart attack, the one he declared at the time, within 12 month of taking the policy out. This has obviously left him in a bit of a mess 1 he can't repay his mortgage and 2, he feels very bitter that he was mis informed about he policy. My question is what can we do about it? who do I need to engage to resolve this favourably? I just don't know where to start but don't want to dive in feet first and make this battle any bigger.

Thanks in advance

Chris

dunstonh

general insurance protection plans do not require medical history to be provided at point of sale. However, in the event of a claim they will underwrite the policy at that point and pre-existing conditions would be rejected. However, unrelated conditions should be paid out on.

So, it depends on what was actually said and documented at point of sale. If the adviser said it allowed him to get cover in areas unrelated without it being declined then that is correct (subject to company used). However, if he was told he would be covered for heart attacks and any condition related to that then that would be wrong.

TowcesterWolf

I've recently moved into my first property and have been looking into reducing my various costs.

Being my first property i didnt shop around much and listened to the advice my mortgage adviser provided.

I ended up with a Decreasing Mortgage Cover Plan with Zurich which costs me £75 per month. I was originally quoted half that but then as a result of a medical the price leapt (i have no medical conditions but do have family history of MS).

I cant find much evidence of others talking about having to have medicals and feel i've been sold a donkey and am paying over the odds!

Having been through my policy documents i cant find any info on stopping the policy. It states ;

Plan Type; Term Only
Term of Plan; 25 years

Have i stitched myself up with this for the next 25 years? If so this wasn't made clear to me at the time.

Any advice?

dunstonh

I cant find much evidence of others talking about having to have medicals and feel i've been sold a donkey and am paying over the odds!

All life assurance policies are underwritten and medical conditions can change result in increased premiums, restrictions on cover or even refusal.

Have i stitched myself up with this for the next 25 years? If so this wasn't made clear to me at the time.

You were not stitched up and you were told. Zurich issue revised terms to you which you need to sign and return to them for confirm your acceptance.

You can rebroke the cover if you wish. However, its unlikely any internet quote portal will be of much use to you in indicating who will be the best provider as they assume clean health.

TowcesterWolf

Thanks for your response.

You were not stitched up and you were told. Zurich issue revised terms to you which you need to sign and return to them for confirm your acceptance.

Yes indeed, i should have taken more time to read and question things i was unsure of. Just so much to take in at the time.

In terms of rebrokering the cover is sending people for a medical standard practice or do different companies use different criteria, i stress i have no intention of hiding anything or mis-leading anyway...just wish to save a few pounds if possible.

dunstonh

n terms of rebrokering the cover is sending people for a medical standard practice

If the declared health conditions require further info then it is normal.

or do different companies use different criteria

They do use different criteria and have different underwriting requirements but generally if you need medical info with one then they all will.