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Joint Mortgage.Only One Name On MPPI.
saintjr87
Posts: 3 Newbie
Hi All.
Would be grateful for any help with the following.
Looking at reasons for MPPI being mis-sold one of these reasons is usually about the loan being in joint names and the insurance only covering one person.Some places saying this is a mis-sale,others saying it maybe a mis-sale.This is the position i have with my MPPI from the Nationwide,joint loan with my wife but only myself named as insured person with 100% benifit payable.We were both working at the time we got the mortgage(2001) however seem to remember being advised to do this as the job i had at that time did not have a sick pay scheme,whereas my wife would be paid for 12 weeks.Guess i'm just looking to see if this is usual for these type of policies.
Thanks.
Would be grateful for any help with the following.
Looking at reasons for MPPI being mis-sold one of these reasons is usually about the loan being in joint names and the insurance only covering one person.Some places saying this is a mis-sale,others saying it maybe a mis-sale.This is the position i have with my MPPI from the Nationwide,joint loan with my wife but only myself named as insured person with 100% benifit payable.We were both working at the time we got the mortgage(2001) however seem to remember being advised to do this as the job i had at that time did not have a sick pay scheme,whereas my wife would be paid for 12 weeks.Guess i'm just looking to see if this is usual for these type of policies.
Thanks.
0
Comments
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Having two people covered would double the chance of a payout - with a corresponding increase in premium.
Is this a mis-non-sale we see before us?0 -
Looking at reasons for MPPI being mis-sold one of these reasons is usually about the loan being in joint names and the insurance only covering one person.
MPPI works by having an amount of benefit and then deciding how to split it. It could be 50/50 or it could be 75/25 or 100/0. You cannot have 100/100 unless you take out a second plan and pay double the premium.Some places saying this is a mis-sale,others saying it maybe a mis-sale.
It is not a mis-sale. It is a decision you make at the time to either fully protect yourself or restrict it due to budget. Also, going 100%/100% could actually be more of a mis-sale as there are scenarios that could see both of you claiming at the same time and that would mean only policy may not pay out as the other is already covering the mortgage. The most common set up is for the larger earner to be covered.however seem to remember being advised to do this as the job i had at that time did not have a sick pay scheme,whereas my wife would be paid for 12 weeks.
Excellent. That indicates thought has gone into it and a logical decision made. Just as you would hope it would be (and how it is in the majority of cases).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
there is no law or guidelines that say joint mortgage so joint PPI. so its a non starter.0
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