Do I need Mortgage Insurance?

dunstonh

Just pulled some stats off a google search....

every year more than 670,000 men aged between 40 and 64 are absent from work for more than six months because of illness.

Almost two million people are sick and disabled and have been unable to work for over a year

Over 2,900 people begin claiming sickness benefits every day – that is, they go long-term sick

A working adult is 10 times more likely to be unable to work through ill health than to die before retirement

One in five people has a chance of being off work for at least three months. One in five people has a chance of being off work for at least three months

phill99

dunstonh wrote: »

Just pulled some stats off a google search....

every year more than 670,000 men aged between 40 and 64 are absent from work for more than six months because of illness.

So that's about 1% of the population. And in the OPs case, they get full pay for 6 months

Almost two million people are sick and disabled and have been unable to work for over a year

Which will include all people under 18 and those over 65 as well as people that have been disabled all their life. So many of this group will have never or never fall into the OPs situation.

Over 2,900 people begin claiming sickness benefits every day – that is, they go long-term sick

And how many each day are coming off sickness benefit and going back to work? This is the typical argument that the salesmen will use - scare tactics.

A working adult is 10 times more likely to be unable to work through ill health than to die before retirement.

And that includes every single one of us in the country who have had a few days off work for a cold. That doesn't mean they are unable to pay their mortgage or will have to leave work as a result of illness.

One in five people has a chance of being off work for at least three months. One in five people has a chance of being off work for at least three months

But does that mean they DO have three months off? Again, I refer to the OP whose employer will pay him full pay for the first 6 months and half pay for the next 6 months.

It's all about statistics. Remember there are three types of lie: lies, damn lies and statistics.

jamesd

phill99 wrote: »

those people who actually suffer an illness that lasts more than 1 year are a very rare thing when compared to the population as a whole.

That's why you buy insurance: the unlikely events that hurt you badly if they happen.

For frequent events it can be too expensive, but uncommon and devastating things are great for insurance because the low incidence keeps the price down.

marathonic

In my personal case, an £85,750 mortgage over 30 years could be covered via a Life & Critical Illness policy for less than £150 per year.

There is a pretty low chance that I'll need a payout. For this eventuality, am I better paying £2.82 per week so that, should I get critically ill, the only worry is the illness itself as opposed to my mortgage or should I take my chances?

At £2.82 per week, I think it's worth it.... One less trip to Starbucks would be one way of looking at it.

wayne77

OK, I think the insurance only pays for 1 year, does this get paid as well as my sick pay? Or does it not get paid if I have sick pay....or does it begin when my sck pay ends?

Yorkie1

wayne77 wrote: »

OK, I think the insurance only pays for 1 year, does this get paid as well as my sick pay? Or does it not get paid if I have sick pay....or does it begin when my sck pay ends?

One of the previous posters said that there are policies available where you can defer taking the insurance until your work sick pay expires.

dunstonh

Yorkie1 wrote: »

One of the previous posters said that there are policies available where you can defer taking the insurance until your work sick pay expires.

That is correct. Permanent health insurance (PHI) allows deferment periods of 1 month, 3 months, 6 months or 12 months. It can also stagger it for those with split benefits (e..g 6 months full, 6 months half pay).

dzug1

wayne77 wrote: »

Do I really need to have mortgage payment insurance?

I work in Civil Service, so will not be layed off. If sick I will get 6 months full, then 6 months half pay. Also I think insurance only pays for 1 year too.


So, a little confused as to why or if I need this?

Thanks, Wayne.

Just about every civil service department I can think of has over the years - and particularly recently - shed staff.

wayne77

OK. Thanks for the replies.

I have phoned the company and they actually agreed that I don't need the cover and were willing to cancel it immediately, however I said I would check it out more first. The guy then said I could look at being miss sold the policy also.
How do I go about reclaiming a mis sold policy?

Wayne.

kingstreet

You make a formal complaint to the organisation which recommended you buy the product and which suggested it met your needs.