MPPI Help

aimex

Hi there,

My husband and I currently have MPPI with paymentshield and are paying £45 per month for this. This is a joint policy which is in my favour as we think there is more chance of me being made redundant than him due to our occupations/sectors we work in. Basically he earns approx £2869 gross and i earn £2166 gross. Our mortgage is £840 per month. Current policy is on the basis that we could survive for 30 days if were made redundant or off sick etc so kick starts after that time and i think benefit is for 1 year.

We are expecting our first child and therefore looking to cut down our direct debits if possible. This is especially the case as i only qualify for Stat Maternity Pay so my income will be significatntly reduced. It appears this does affect policy and that we continue to pay at higher rate although assume if i was made redundant within that time they would only pay out what im currently recieving?

Anyone know of any good policies/companies to look at or whether the amount we are currently paying seems reasonable? It just seems like a large expense to me, and i know thats the case with these tupes of policies and obvioulsy if we needed it to pay out then we would be getting more than £45 a month back but im sure you know what i mean!

As always any help greatfully received.

Cheers XX

dunstonh

Anyone know of any good policies/companies to look at or whether the amount we are currently paying seems reasonable?

Paymentshield are good. Unlikely to be cheapest but then when you claim, you dont want to be with a cheap company. Any changes you make now to provider would see them refuse to payout on any redundancies as they will have clauses and a deferment period to stop that sort of thing.

Paymentshield do allow adjustments of the cover/premium but any increase is normally subject to deferment of cover or usual clauses on known or expected redundancies.

OshayAway

I agree with dunstonh. Paymentshield have a good reputation for good reason. There may be cheaper options and even possibly more comprehensive (with fewer exclusions) but be careful about changing to a cheap plan that is cheap in terms of it's quality also.

Get advice as a protection to you and if you do change, chose a policy that will 'transfer' thus avoiding a new initial exclusion period to the unemployment part of the plan as described in the previous post.

kingstreet

aimex wrote: »

This is a joint policy which is in my favour as we think there is more chance of me being made redundant than him due to our occupations/sectors we work in. Basically he earns approx £2869 gross and i earn £2166 gross

If you've got split cover, the opposite actually applies.

At the time of a claim, they will establish who has what proportion of your total income and pay out according to that.

On the current split, if you lost your job, or were off sick around 40% of the benefit would be payable. If your partner claimed, he'd qualify for around 60%.

Obviously, a claim may not take place for many years when your income split is completely different.

You should keep all your cover under regular review to ensure it continues to meet your needs.