Mortgage Protection Plan

Tancred

flathunting wrote: »

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.

These protection insurances are obscenely expensive. You can insure yourself simply by having enough savings in the bank - I would avoid these scams.

Tancred

ACG wrote: »

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.

Scaremongering nonsense. The 7 year claim average is for disability, not unemployment. Insurance schemes for unemployment normally stop paying after one year of claims.

Kynthia

I declined the life insurance that the mortgage company tried to tell me I 'had' to have. At the time I had no dependents, was living alone, had a very generous payout to my beneficiary from my employer should I die, so I couldn't see how I needed it. This time I have a husband, a child on the way, there are planned redundancies at work so my circumstances are very different. Therefore I will be much more inclined to take out various protection policies.

The thing to bear in mind is what are your circumstances, what protection might you need, and are you paying the best price for the right level of cover. So many people over pay or end up with cover they don't need or wrong for them.

ACG

Tancred wrote: »

Scaremongering nonsense. The 7 year claim average is for disability, not unemployment. Insurance schemes for unemployment normally stop paying after one year of claims.

Who has mentioned unemployment insurance? They have mentioned protection.

To me that covers:
Life,
Critical Illness,
Income Protection,
Unemployment.

Not everybody needs every one of the above and to be honest, i sell less unemployment cover than i do any of the others. I actually sell more income protection than anything else and its the only policy of those i have myself.

If the OP has no partner/dependents then life insurance is unlikely to be needed. Just like if the OP is in a decent job in a thriving sector then unemployment is unlikely to be needed - if however she is working in manufacturing then it might be higher up their list of requirements.

I have no intention of scaremongering people, but if people know the facts they can then make their own decisions in life.

Here is a link to a canadian website - http://insureright.ca/what-is-your-risk/ - the figures are going to be slightly out as its a different country but after speaking to various life offices over here its pretty close... for me, there is a 52% chance i will claim on life, critical illness or income protection before i reach 65 years old... thats a flip of the coin pretty much.

pinkshoes

ACG wrote: »

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.

Oh! I had enough for about 2 years! :eek:

ACG

If your happy with that, thats fine.
But what happens if you become one of the statistics and are ill for 7 years?

I cover myself for £1000 a month, its not the maximum cover i can get but it costs next to nothing and i know if i was ill then i would be able to afford my mortgage and bills and any money my partner earns would effectively be our spending money. But its not just ensuring you can cover your bills, you may end up needing care - in which case £1000 would make a decent contribution towards that.

Each to their own, its all about risk and whether its worth spending say £20-30-40 or not. I used to buy about 3 costa coffees a week when i worked in town to protect me for £1000 a month it costs a lot less than those.