Mortgape Protection for self employed - any point?

jasonart

I am about to go self employed, leaving the job I have worked at for 20 years to do something I enjoy instead - so scary times! :eek:

I was wondering if there was anypoint in actually paying my payment shield mortgage protection any more. Or if in fact it would even pay out on self employed customers?

Perhaps a health insurance policy would be a better option to spend my money on? to give me some more security?

My wife works as a tutor just 10 hrs per week on a term to term basis, so not secure, so the mortage protection etc has come down to me in the past and I dont want to make any mistakes I will regret!

REALLY APPRECIATE ANY ADVICE

dimbo61

You need to ring the people you have the mortgage protection shield with to check if they cover you if you go self employed.
Having a good savings pot is always a good idea when self employed so have you looked at offset mortgages!!

jasonart

Looks like my payment shield is very highly priced now compared to people like iprotect.

Plus it appears that the only way a self employed person could claime is by completely closing their business down, and I cant see that happening - So perhaps accident / sickness would be a better option?

I do have a moderate sized nest egg put away, but I still get concerned that I should have some protection in place.

kingstreet

Did you take accident, sickness and unemployment cover with Paymentshield?

If so, you could ask Paymentshield to remove the unemployment cover. This will cut the cost by half and you would still have accident and sickness cover with payments possibly after 30 days, backdated to day one, dependent on how the plan was set up. This would be paid for upto 52 weeks disability.

For extra security, permanent health insurance could be effected to start from the end of week 52 to ensure your income protection continued until the end of the mortgage term, or until retirement.

I'd see an IFA about this before I made any hasty decisions. PHI could be ok on its own, but a shorter deferred period may mean premiums which aren't affordable depending on what you do for a living. Keeping the A&S cover with Paymentshield might end up cheaper and the best advice for you and your circumstances.