What is my mortgage insurance?

74jax

I have a Halifax mortgage with insurance.

I was off sick last September's for 5 months and for some reason thought my insurance paid my mortgage after being off sick for 30 days.

It appears this is not the case and it only pays the full amount if I become terminally ill.

I'm not sure why I took this out (yes I know I should have checked) but its only come to light when I tried to claim for what I believed I was covered for.

Can I have a sickness insurance, for the future, and as I have paid for many years into my current policy is it worth continuing - just incase?

ACG

What you have sounds like life insurance. As for whether you need it that depends on you...do you have a partner or kids who would have to pay the mortgage if you were to die?

What you want sounds like Accident and Sickness cover (Sometimes known as MPPI) or Income Protection.
Personally i sell much more income protection because the benefits far outweigh the slight extra cost (its not even always more expensive).

You might want to speak to a mortgage or financial advisor to get more information on each and some quotes as a few providers only deal with advisors.

weejonnie

The policy could be critical illness - as commissions on these policies are/ were pretty hefty. It will make interesting reading pursuing someone for NOT selling PPI when it might have been suitable for you.

If you do go for an ASU policy you need to watch out for the following.

1) Initial exclusion period - the length of time before you would be covered for loss of your job - many policies will exclude job loss announced in the first 90 or 120 days of the policy.

2) Any excess period - i.e. a period during which you won't be paid. The best policies give 'back to day one after 30 days' which means you must be off work and claiming benefit for 31 days before being paid out. Many of the banks sold policies on back to day 61 after 90 days meaning you have to be off for 3 months to get the first payment (the premiums were cheaper so they could get more commisison)

3) The maximum amount - You should ensure that the total benefit covers not only your mortgage but also other monthly expenses - after all you would still have gas, electricity, water, council tax etc to pay. The only thing to watch out for is if you would lose any means-tested state benefits that kick in after 6 months.

opinions4u

It's amazing.

All that paperwork that clearly highlights what cover you bought and what cover you declined and you still don't know what you're covered for?

74jax

opinions4u wrote: »

It's amazing.

All that paperwork that clearly highlights what cover you bought and what cover you declined and you still don't know what you're covered for?

I know, I just wish it was clear, but I totally agree. It appears, after months of getting nowhere, when they sent my policy to me they printed off a summary of a different type of policy. Possibly the sickness one mentioned above. I am still awaiting a full policy breakdown but as I am back at work it is easier now.

I certainly don't have any paperwork of what I declined, but it doesn't matter now. Fingers crosses 'my' paperwork is on its way as I type.

dunstonh

The TMPP is a policy that allows you to choose what different options of cover you want. It can be sickness and accident but it can also be life assurance or critical illness cover (any one or mixture). It is for you to choose which you want.

Halifax then follow this up after setting it up with documentation telling you what you have specifically as well as providing the generic documentation.

magpiecottage

Oh the irony - a complaint that PPI was mis-not-sold!