Mortgage Protection Policy Question

Bazzajg300

This is my first post on the site, please be gentle

I have a Mortgage protection policy, which covers both unemployment and sickness. Im going to be out of work for at least 9 months on sickness. When I took my policy out, I was covered for 800 towards mortgage payment and a further 300 for other bills. The 800 pounds is specifically for mortgage only.

I lengthened my mortgage policy to decrease my payments a while back, but kept paying for the same cover. My mortgage now is sub 400 pounds and the additional money, can not be more than 50 percent of your mortgage.

Can I increase my mortgage (been told to this would be done by making overpayments) as I have been insuring myself for 800 pounds, or will they just pay the mortgage as it is.

Thanks in advance.

Barry

OshayAway

Hi Barry,

It may depend on the insurer but normally, at least, the benefit is based on your normal regular monthly mortgage repayment. I suspect that you may now be over-insured on that basis.

The insurer will request certain evidence to check the limits against the circumstances at point of claim. It's not uncommon for this to occur, often the policy documentation will suggest regular review of your cover for this reason.

In line with what you describe, I would expect the policy may pay something in the region of £600.