Mortgage Protection Plan

flathunting

Hello

Looking for a little advice please... I am a FTB and have recently had an offer accepted and my mortgage approved by Nationwide. My mortgage advisor has now said that he will prepare a mortgage protection plan and email it out to me. I am still awaiting this. So I am wondering, is this what most people do? Do you have a mortgage protection plan?

I have spoken to one or two people regarding this and they said they didn't bother with the plan as they have protection through work. I don't know a lot about it.

Apologies if it seems a really stupid question!

Thank you

Oops - maybe should have put this on the mortgages board. Please can someone move this if possible. Thank you.

cattie

You never know what will happen in life & believe you me, in one second your whole world could change for the worse.

Ask yourself what would happen if you lose your job, who is going to pay your mortgage & your bills, how will you keep afloat til you find another job? Or say you became too ill or disabled to work, how are you going to get by then?

Unless you really can't afford to take out insurance cover for such eventualities, then my advice would be to give them serious consideration.

I know that for me, the insurance policies I'd decided to take out when first getting a mortgage turned out to be one of the wisest things I could have done.

hcb42

Equally, I dont, but I do have savings, and save about 1/3 of my monthly pay also - it all depends on your situation OP

ACG

All brokers do (or sould) cover this off with you. Even if its something you dont want, we as advisors should be covering it off to not only make you aware of it but to also cover our backs down the line should anything happen to you.

The way to i think about this is:
If you were to die what would happen?
If you were to die what would you want to happen?
If you were to be off work for 6, 12 or 24 months what would happen
What would you want to happen?

I then get a budget and do what i can with it.

If you want it, great! If you dont, thats fine too but its always worth thinking about.

pinkshoes

I didn't bother with it, but then I had enough savings to pay for at least 6 months full mortgage payments if I was unable to work!

How will you pay for your mortgage if something happens to you?

ACG

pinkshoes wrote: »

I didn't bother with it, but then I had enough savings to pay for at least 6 months full mortgage payments if I was unable to work!

What would you do after 6 months? Can you survive on this?
According to LV= their average claim is for 7 years!

Its similar figures with other providers and the governments own statistics are around 6-7 years too.

flathunting

Thank you very much for your replies everyone.

I think I'm definitely going to have a look into it and will most likely take a protection plan.

My savings are going to take a massive hit with doing up the house so would be wise to.

Thank you again

armour

If you do take this plan that is being 'prepared' for you, you shoud make sure that it is suitable for you. After all, a dozen years ago, PPI was routinely 'prepared' for people taking out personal loans.
I've never taken out such insurances, they generaly benefit the lender rather than the borrower.
Stands to reason really.
I'll lend you loadsamoney and sell you a policy which will (may) pay out if you can't pay it back.

ACG

Life insurance - pays out a lump sum to the persons family to ensure they can afford the mortgage and are not evicted.
Income protection pays out to the person insured to make sure they can afford their bills and mortgage so they do not get evicted.

armour

Check the Ts &Cs of this INSURANCE POLICY that is being 'prepared' for you

Duskylady

Do not assume this is the cheapest or best plan. If you decide to take out insurance decide on what you want and then get quotes.

We have been quoted £40 per month for life insurance and bought the same for £12