Halve Your Mortgage Payment Protection Costs Article Discussion Area

OshayAway

TowcesterWolf wrote: »

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).

Your best bet would be to enlist the services of a broker / adviser who is prepared to research this for you with underwriting departments of as many insurers as possible.

Insurers do vary on how they treat cases depending on the medical condition concerned. MS is an example of a condition that insurers will want as much information due to the possible implications.

If this was the only medical disclosure, it is possible that they want as much verbal information from you regarding your family member(s) and to ensure that you have not recently started experiencing symptoms yourself. Also because simply writing to your GP may not have provided much if any family medical history. Did the medical include specific questions about your family history including ages at diagnosis etc?

For example, it could be that a different insurer may be happy to take that information over the telephone by an underwriter.

Interestingly, insurers do have different ways of applying ratings for possible added MS risk. Some will apply a standard rating to the premium for the life of the policy, others (depending on your age) will apply a short term rating calculated on the benefit / sum assured (ie multiply a factor for every £1000 of benefit for a set number of years or until you reach a certain age).

This is due to the fact that the risk of MS diagnosis is very much age dependant (from memory mid 40's).

oohtobeaterrier

i have worked with my employer for about 4 years, and have a mortgage of around £500 per month, there are rumours at work that we will be closing within 2 years. i canceled my payment protection with our mortgage provider (abbey) some months ago and i want to set up a new policy that will cover my payments should the worst happen, i would appreciate some advice as to the best and cheapest cover out there thanks Mick.

dunstonh

i would appreciate some advice as to the best and cheapest cover out there

best and cheapest are not the same thing. Martin's article focuses on the cheap but they are certainly not the best. Which is it that you want?

oohtobeaterrier

i suppose i want the best, but price is important too in the present climate.

JimmyTheWig

oohtobeaterrier wrote: »

there are rumours at work that we will be closing within 2 years.
...
i want to set up a new policy that will cover my payments should the worst happen

My concern is that if you know about redundancy being on the cards then I don't think a policy would pay out - it's a bit of an unfair bet, if you know what I mean.
Would these rumours count as knowing about it? I don't know. I think you probably want expert advice - you don't want to get a policy that then doesn't pay out when you need it.

lynoc

My husband and I took out extra money on our morgage and MPPI. the morgage was in joint names, payment came from joint account.All statements were addressed to us jointly however after my husband's death I was informed the policy only covered myself. I did question this at the time and asked for copy of the policy and was then sent a single sheet of paper stating I was the only person on the policy .......... no signitures.
All the paperwork I have relates to us jointly and was signed by us jointly, at no stage was I ever informed my husband was not covered. This was over 4 years ago, can I do aything ?

dunstonh

can I do aything ?

If an adviser was used then you could see what the recommendation was and why it was set up as it was. If no adviser was used and your husband set it up directly then he is responsible for the cover that is in place.

no signitures.

There is no requirement to have a signature on general insurance policies.

I'm not actually sure what you are querying though and what benefit it will be to you. MPPI does not include life assurance. So, after your husband's death, the MPPI would default to covering you only.

lynoc

lynoc wrote: »

My husband and I took out extra money on our morgage and MPPI. the morgage was in joint names, payment came from joint account.All statements were addressed to us jointly however after my husband's death I was informed the policy only covered myself. I did question this at the time and asked for copy of the policy and was then sent a single sheet of paper stating I was the only person on the policy .......... no signitures.
All the paperwork I have relates to us jointly and was signed by us jointly, at no stage was I ever informed my husband was not covered. This was over 4 years ago, can I do aything ?

bulk of morgage was covered by endowment we asked for insurance to cover the extra amount ....... I understood this to include settlement upon death

JimmyTheWig

The protection is seperate from the mortgage. We've got a joint mortgage, for example, but as my wife is self-employed we have an income protection policy in just my name.
As per dunstonh's post, the confusion may have arisen due to the type of cover that you are talking about. Did you have life assurance ("death cover")? In both names? Have you got paperwork to show that?
I think you need to show the paperwork (a copy, at this stage, is probably safest!) to the company in question and see what they say.

dunstonh

lynoc wrote: »

bulk of morgage was covered by endowment we asked for insurance to cover the extra amount ....... I understood this to include settlement upon death

This thread is for the discussion of mortgage payment protection and not life assurance. What is it that you have?

The endowment would have life assurance built in it and will pay out on death but MPPI does not.