mortgage protection insurance

hellsbells120780

Hi, I am thinking of taking out mortgage protection insurance for if I am made redundant. My actual mortage is ~£650, but if I say my mortgage is more, so that I get more cover, do they check this does anyone know? Or, if you ask for a certain level of cover do they give you the amount you are covered for? These are the words on the website "i:protect is designed to pay out the sum of money you choose to help you cover your monthly mortgage repayment in the event of being off work as a result of accident, sickness or unemployment for a period of up to 12 months." Any help gratefully received.

Samdy_Gray

Of course they will check. Take a look at the T&Cs, they will reserve the right to request information such as bank statements/mortgage statements etc.

dunstonh

My actual mortage is ~£650, but if I say my mortgage is more, so that I get more cover, do they check this does anyone know?

yes they do.

Or, if you ask for a certain level of cover do they give you the amount you are covered for?

With a PPI they do. With an MPPI it is limited to mortgage (and often upto 25% on top)

Sounds like you would be better with a PPI and not an MPPI.

ACG

As dunston said a lot of companies will allow you to take 125% of your mortgage amount to cover bills. Some insurers will pay for 12 months other for 24 months so its worth checking.

OshayAway

In addition to the comments made about the additonal figure you are permitted on top of your mortgage repayment figure, it's worth noting that this varies between providers. Typically you can add up to 25%/33%/50% but most do specify that this figure has to be quantified. In other words, they may use the wording 'mortgage related costs' which specifically corespond to the combined total of your household insurance and life cover.

Some allow the cost of utility bills and even council tax, the vast majority don't.

There are a few (but not many) that you don't need to specify. It's worth checking because at claim, they will check and ask for evidence, if your totals don't add up to the figure you are insured for, you'll like;y find that you are over insured.

shadowleague

Hi, a few years ago I had a client who I had arranged MPPI, she used it and it gave me the best feeling ever. Helped her through a particularly tough time.

I would imagine if you contact an Independant mortgage broker and not a bank they should be able to find you a better policy.

Dunstonh, What do you class as PPI and where can you get such a plan?

dunstonh

Dunstonh, What do you class as PPI and where can you get such a plan?

It is the same as MPPI except that it is not linked to a mortgage and doesnt have the restriction that the OP is coming across. It allows a maximum against income (typically around 60-66%)