Mortgage Payment Insurance,any Recs?

POSSETTE

We Pay Out Approx £700 A Month Inc Endowment,and I Am Looking For An Insurer To Protect Against Acc/sickness..im Currently With Centrepoint, But Am Looking For Better Quotes,anyone Had Experience Of Claiming With Anyone Who Didnt Try To Wriggle Out Of Paying Up??;)

jasonking

The trouble with all these ASU (MPPI) type policies is that they have long exclusion lists. For example most absences from work are due to musculo-skeletal & mental disorders (back ache and stress) however ASU plans generally exclude this and at best require a specific diagnosis from a consultant (rather than your GP). You should consider looking at proper Income Protection (PHI) instead as this doesnt have such standard exclusions, pays out indefinitely in the event of a claim and can even be cheaper than ASU.

Just be warned that most 'IP' websites are actually selling ASU

POSSETTE

i will look into IP then thanks. we pay at mo £21 a month to cover £580,which was my old mortgage payment,but as it has now gone up im looking to update it and shop around..Any recommendations i should look at?

drewster_uk

I've just re-done mine - as per recommendation from one of Martins earlier articles.:money:

I had my MPPI through my mortgage lender, i was paying £37.50 p/m on a monthly mortgage payment of £730.

I'm now using http://www.bestinsurance.co.uk/
I'm now paying £14 p/m with the same cover, a saving of over £280 a year.

It's all done online and only takes 5 mins.

Well worth looking at. Hope it helps.

Cheers
Drew

jasonking

Bestinsurance is ASU/MPPI again, a cheap one compared to lots of other insurers but still ASU with all the associated exclusions, see section 6 on http://www.bestinsurance.co.uk/policy-wording.asp?siteID=878&useDef=1

For IP you will have to speak to a broker/adviser directly as it is not often quoted/sold via websites as it is a little more complicated, but more comprehensive cover and far fewer exclusions

dunstonh

A Jason says, many of these ASU policies (also called MPPI) say income protection but they are not. Permanent Health Insurance (PHI) is the proper income protection. In the event of a claim PHI can continue until illness ceases or your specified end date which is usually 65-68 depending on your retirement age. ASU plans pay for 12 months typically.

You should make sure you dont switch from a higher quality product like PHI to a lower quality product like ASU just because you think its cheaper.

POSSETTE

OOOH thank you for all that info...i have looked at best insurance and i would save approx £10 a month with them..but i will also enquire at a broker about PHI..i didnt know there was a difference but i do now. I do have sciatica, but it hasnt recurred for over 2 years which is a requirement of Best to be covered for it..there are certain exclusions as you say.
Many thanks again...:T

TEDDYRUKSPIN

Please be aware that although you are finding the cover to be cheap, will you actually get a pay out on these cheap companies? What happens when you need to make a claim? How can you complain if they are phone only service? Sometimes the reason you pay more like for high street banks and bs is that you go into the branch and complain and get help.

Think about this. What is the likely chance you can make a claim and get your money from banks such as HSBC, TSB etc compared to companies like the above?

What we need is personal experiences from people about these companies. People are paying hard earned money to these so called insurances.

Just remember income protection does not pay out for unemployment!

burnsguitarman

Try paymentsheild we are claiming for unemployment under this policy at the moment and have found them to be brilliant, they charge much less than the banks for a similar product.

dunstonh

paymentshield is not income protection. It is ASU.

burnsguitarman

I thought the thread was for mortgage protection, which is what we have with paymentsheild plus we have the option of increasing cover to 75% of income.