morrtgage protection

tedglen

I am looking at getting mortgage protection. However how does it work if you are a couple and both working ?

e.g do I buy a policy each? If one of us looses job will it still pay out ?

Thank you

kingstreet

Presumably, you mean protection for your mortgage payments in the event of accident, sickness or unemployment?

Split cover pays out the full amount if you are both off at the same time. In the event of one of you claiming, it pays a proportion of the benefit based on the difference in your earnings at the time.

For example, if you earn £20k and your partner earns £10k, it would pay out 2/3 of the benefit on your claim and 1/3 on hers.

For true "joint" cover, you take out two single policies, doubling the benefit and the premium.

Horseunderwater

tedglen wrote: »

I am looking at getting mortgage protection. However how does it work if you are a couple and both working ?

e.g do I buy a policy each? If one of us looses job will it still pay out ?

Thank you

Whatever way you go, check the wording very carefully and make sure it will pay out if you lose a job get sick etc. We found out to our cost many years ago now that we had one of these policies, put the claim in and although I was being made redundant, I had not yet been served the letter. I left too soon - so we had paid out a lot of money for essentially nothing. Cancelled it there and then. Never had it since either. We had lots of other policies that were also like worded. There was only one that had the older wording and that one paid out. If you happen to be self employed - they may not cover you if the business fails for example. Oh and if it is to cover illness, make sure that you tell them of anything you already suffer from because if you do not it will come back and bite you in the you know where!

tedglen

If I lost my job through redundancy, would they not always pay out?

opinions4u

tedglen wrote: »

If I lost my job through redundancy, would they not always pay out?

you would have to meet the legal definition of redundancy for a claim to be paid. The poster above left the job before being made redundant.