MPPI - How's it work in a joint mortgage?

MrParsons

Hi All,

I'm taking out my first mortgage with me wife to be and I'm a little confused about MPPI and how it works. I've read the helpful article on here and have done and online quote with justclick4cover. com.

Firstly, it says benefit required. I assume this is the amount I would like to cover. My mortgage would be £730 a month so i have entered that amount.

I also note that in the policy wording it says that the policy would only cover myself for unemployment ect and that If I want to cover a partner then they have to take out a policy as well.

I earn a lot more than my partner and subsiquently, we could survive if she were to lose her job. If I lost my job though, it would be a different matter, hence the MPPI enquiry.

If I were to lose my job and make a claim, would the cover pay for all of the mortgage? If not, how much would it pay? I earn double what the missus earns so I hope it would be proportionate to that.

Any help appreciated!

ACG

Yes, the cover is there to pay the mortgage if you lose your job. So no matter what happens to your wife, if you lose your job the policy is there to pay out.

MrParsons

Thanks for the reply.

Not that I have any, but if I was to have any savings, would this affect this policy?

ACG

Haha, theyre not looking to avoid paying out - dont worry. But to answer your question no it wont affect anything at claim stage.

On a side note, have you looked at PHI/Income Protection? You can cover a percentage of your income and it will cover you if your off work due to sickness or ill health - until you return to work or the plan ends whichever is sooner.... for me, a plan would pay me for the next 35 years if i had to claim tomorrow until my retirement age.... this covers ill health though.

Is it specifically unemployment cover your looking for? I very rarely recommend this to my clients as most people are comfortable they could go and get another job tomorrow or would receive a large enough redundancy pay out.

MrParsons

Yes, its more to do with the unemployment aspect as I'm changing jobs this week although I haven't looked at the other option you mentioned. I'll have a quick google!