Options on Mortgage protection

trimmtrab_2

Hi there guys

I am buying my 1st property and the broker is keen to sell me the MPPI (mortgage payment protection insurance), I'm a 39 yo single bloke, healthy, no dependents, no immediate family so if I was to snuff it then no-one would be affected financially. I don't have any other cover at the moment either

I have a non-too risky and fairly secure job, I get sick pay on a sliding scale and if I was to be made redundant I would be given four months notice plus any negotiable package.

So what should I do? Do I bother as no-one will benefit if I croak, the only worry I have is if I am long term sick or any incident renders me unable to work again.

Thanks for your help

TT

dunstonh

So what should I do? Do I bother as no-one will benefit if I croak, the only worry I have is if I am long term sick or any incident renders me unable to work again.

MPPI doesnt cover death anyway so that point is irrelevant.

If your concern is long term sickness then tell the broker that you are not interested in MPPI but would be interested in permanent health insurance (higher quality form of income protection than MPPI and typically available from IFAs. A small number of tied agents have it but their versions are really any good).

trimmtrab_2

dunstonh wrote: »

MPPI doesnt cover death anyway so that point is irrelevant.

If your concern is long term sickness then tell the broker that you are not interested in MPPI but would be interested in permanent health insurance (higher quality form of income protection than MPPI and typically available from IFAs. A small number of tied agents have it but their versions are really any good).

So you think MPPI is no use, in my circumstances is permanent health insurance not a great deal of point or a lot of money to spend on an unlikely event? Had a look at quotes and the cheapest for my circumstances is £43 a month

missi1

Hi there, I got my first mortgage 3 years ago and got a brilliant deal from Regency Insurance Brokers, the insurer is First Payment Protection Ltd who are part of Fortis Insurance. Mine costs £10.83 per month and you can claim almost instantly after you take out the policy where as some you have to wait a few months to claim should the worst happen, ie sickness. hope that helps

PS you can still get an instant and very quick online quote on their website. www. regencyinsurancebrokers.co.uk

dunstonh

So you think MPPI is no use, in my circumstances is permanent health insurance not a great deal of point or a lot of money to spend on an unlikely event?

PHI covers everything an MPPI would except unemployment. Plus, its underwritten at point of sale and there are less get out clauses.

Had a look at quotes and the cheapest for my circumstances is £43 a month

Where did you get PHI quotes from as there is little coverage of PHI on the internet. Most quote sites stick with PPI as its easier for them to sell.

Hi there, I got my first mortgage 3 years ago and got a brilliant deal from Regency Insurance Brokers, the insurer is First Payment Protection Ltd who are part of Fortis Insurance. Mine costs £10.83 per month and you can claim almost instantly after you take out the policy where as some you have to wait a few months to claim should the worst happen, ie sickness. hope that helps

PS you can still get an instant and very quick online quote on their website.(link removed as its probably spam)

If you are after a budget plan with limited coverage then fair enough. I wouldnt waste my money personally.

F_T_Buyer

missi1 wrote: »

Hi there, I got my first mortgage 3 years ago and got a brilliant deal from Regency Insurance Brokers, the insurer is First Payment Protection Ltd who are part of Fortis Insurance. Mine costs £10.83 per month and you can claim almost instantly after you take out the policy where as some you have to wait a few months to claim should the worst happen, ie sickness. hope that helps

PS you can still get an instant and very quick online quote on their website. www. regencyinsurancebrokers.co.uk

I'm currently looking into the insurance to cover my mortgage, and you have to dig deep to realise that policy only pays out for a maximum of 12months!

dunstonh

F_T_Buyer wrote: »

I'm currently looking into the insurance to cover my mortgage, and you have to dig deep to realise that policy only pays out for a maximum of 12months!

Go with PHI instead of PPI and you can go the full term if you want. PHI doesnt cover unemployment though. Just sickness and accident.

ACG

agreed, phi is probably more useful to you as you stand at the minute.

But you should maybe think about life insurance. What happens if you start a family in the future - cover will be more expensive to take out then than it is now. If anything happens to you in the mean time (becoming ill) then you may not even be eligable for it in the future.