PPI, MPPI and Income Protection...?

Beanz

Hi,

I'm in the middle of trying to overhaul my spending as part of an effort to clear my debts.

At the moment I have a mortgage with payment protection which covers for unemployment and sickness and also a credit card with PPI that also covers for sickness and unemployment.

The mortgage cover is £28.74 pm and the CC cover is currently £18.21 pm but changes with the card balance.

Both policies are provided by the lender.

Could anyone advise me whether it's worth cancelling these policies and replacing them with a "unified" income protection policy which would also ensure I have money for other expenses in the event I need to claim?

Another option would be to get third-party PPI and MPPI rather than sticking with the lenders.

What's best!?

Cheers
Danny

ohmsoft

It is unlikely that you are getting the cheapest deal through your lenders so may well be worth getting a quote from third party for a stand alone policy.

Check what your covered for though - many products tied to borrowing will repay balance on death (and sometimes Critical Illness) they may also pay for longer periods. Stand alone Accident Sickness and Unemployment policies generaly pay only income and for a maximum of 2 years. Permanant Health Insurance may be an option as this will pay until retirment.

Beanz

Thanks for the reply!

My current thinking is to go for stand-alone income protection. That way I can cover the costs of mortgage and CC as well as other cost-of-living expenses.

I think my confusion comes from the fact that income protection costs less than, for example, MPPI. Why is this when the policies I have looked at are virtually identical except the MPPI policies obviously only pay mortgage payments which are less than income!?

Also, I've looked at https://www.antinsurance.co.uk as advertised on the site. Can anyone recommend any other companies that offer income protection insurance?

Danny

jasonking

dont confuse income protection (also known as PHI) with ASU cover. Antinsurance is ASU type cover. IP/PHI will pay an income indefinately in the event of accident ot illness preventing you from working. ASU only pays out for 12 months usually. PHI can be also be cheaper depending on your occupation. PHI is usually better cover to go for. Either way the cover through your lenders will probably be expensive.

For an explanation of both see http://www.torquilclark.com/life/mppi-ip-comparison

Beanz

Thanks for the info.

I don't supposed anyone can provide a direct comparison between all three - IP/PHI, MPPI and ASU cover?

Cheers
Danny

jasonking

MPPI and ASU are basically the same thing with different names, as are IP & PHI. The fact sheet link I gave you compares the different features. If you want price indications then you should speak to your IFA, if you havent got one then we can help.

Beanz

Thanks for the follow-up.

I'm off to do some reading me thinks! Back soon :-)

D.Jay

Hi, I'm only a new member but felt I had to jump in on this thread. I've just spent a week checking out payment protection and I have to disagree with what jasonking said. MPPI and ASU are not the same thing. I was looking to protect my mortgage and found https://www.antinsurance.co.uk on this site. I cancelled my old policy and took a much better income payment protection policy (ASU) with them that covered *all* my monthly costs rather than just the mortgage; basically paying less for more!

I found their “What is income protection?” on their web site really helpful in understanding the difference between the payment protection products. I would definitely recommend checking that out, their Quick Quote thing is really good too.

Good luck!

dunstonh

MPPI and ASU are not the same thing.

They are the same thing. ASU is the old generic name which over the last few years has become MPPI. Both are generic names for a type of plan.

I found their “What is income protection?” on their web site really helpful in understanding the difference between the payment protection products. I would definitely recommend checking that out, their Quick Quote thing is really good too.

PHI is the most comprehensive of the types of income protection yet there is no mention of it in that section. The link jasonking posted is more informative and accurate to include the two generic types of cover there is.

I could be cynical and say that as antinsurance do not offer PHI, they exclude it for that reason.

rossbenn

jasonking wrote:

dont confuse income protection (also known as PHI) with ASU cover. Antinsurance is ASU type cover. IP/PHI will pay an income indefinately in the event of accident ot illness preventing you from working. ASU only pays out for 12 months usually. PHI can be also be cheaper depending on your occupation. PHI is usually better cover to go for. Either way the cover through your lenders will probably be expensive.

For an explanation of both see http://www.torquilclark.com/life/mppi-ip-comparison

I thought I.P. only paid for a term ( normally retirement )which is decided at onset of the policy.
Is there a W.O.L. version which I have missed?

Beanz

dunstonh wrote:

PHI is the most comprehensive of the types of income protection yet there is no mention of it in that section.

Can anyone explain to me the differences between PHI and IP as it is described on the Antinsurance site?

Also, I'd like to say thanks everyone for showing such interest in this!

Danny