MPPI - is it worth it?

anna_d_2

Currently we are paying around £45 a month in MPPI (with additional cover above the mortgage amount) for around £1200 of cover a month in case of illness/ unemployment.

What is the general view on these policies?
I've been employed in the same job for 13 years - but our industry is one of the many being battered by the recession and the future is not by any means certain, but this seems like a sizeable chunk out of our monthly expenditure.

InsideInsurance

Most ASU products have had a hammering in the press over recent years due to claims of miss selling or declining claims etc.

Like most insurances though, those that have successfully made a claim think they were a great investment. Those that pay for the policy and never need to make a claim often think it was a waste of money/ con or miss sold

dunstonh

MPPI is just about the only PPI that is worth having. Whilst PPI in general is a dead duck now, MPPI has largely escaped the issues. Mainly as it was actually set up correctly in most cases and covers a major debt where the benefit system assumes you have MPPI.

All insurance is a waste of money until the day you have to make a claim. Then it is a Godsend. Are you going to claim or not in the future? You dont know. If you didnt have it and suffered a claimable event could you afford the consequences? i.e. do you want to take the risk of losing your house? Its your choice.

anna_d_2

Thanks,
I'm pretty sure I have a decent policy in place and of course, should we need it, it will give us invaluable breathing space.
I've just seen a lot of SOAs recently with no mention of MPPI and wondered if I was being over cautious?

Just_Some_Guy

Nah. Mortgages are for tens/hundreds of thousands of pounds and last decades. You can't see the future so some insurance is sensible. The PPI hoohah concerns someone buying a sofa for £1000 and paying it off over two years. If something bad happens you don't care about your sofa being repossessed!