Mortgage payment protection question

kippaxman

Hi,
My wife was involved in a car crash 1 year ago today. She was off work for seven months during which time she received full pay. Someone told me today that she could activate the mortgage payment protection plan even though we didn't incur a loss financially to cover the mortgage payments during her time off work. Is that a true statement? If yes can it be backdated?


Thanks for your help

Insider101

kippaxman wrote: »

Hi,
My wife was involved in a car crash 1 year ago today. She was off work for seven months during which time she received full pay. Someone told me today that she could activate the mortgage payment protection plan even though we didn't incur a loss financially to cover the mortgage payments during her time off work. Is that a true statement? If yes can it be backdated?


Thanks for your help

Yes it is almost certainly true and she may be able to backdate a claim if she has medical evidence of her absence from work. Best to ask the insurer.

kippaxman

Thx for the confidence boost, she has plenty of medical evidence. I'll phone the insurance in the morning & get back on how I got on. Couldn't find any info on this question searching through Google for a while.

McKneff

They may not speak to you, it may be your wife that needs to do the talking x

kippaxman

Update,
I got through to the insurance today & I was flabbergasted. Yes we can activate our policy & claim against it, yes we can backdate it but for a % of £220??? My mortgage is over £600. They told me it was my responsibility to inform them of a change of circumstances. I paid £600 to my bank to sort out administration three years ago the last time I fixed the mortgage. The value hasn't changed for about 18 years so if I would've been ill or injured less than one third of my mortgage would've been paid. As it's a joint account my wife who is part time is only entitled to 16% of £220. What a con, I have registered a complaint today with my bank about miss informed MPPI insurance. It was virtually worthless to us all these years and the thing which tipped my lid was they implied it was my error as I didn't inform them. My repost was to say I was not their customer my bank was, I am the banks customer. Waiting game now to see what happens, I'll be back to update when the situation changes just in case it helps someone else.

dunstonh

Yes we can activate our policy & claim against it, yes we can backdate it but for a % of £220???

The sum insured and how it is split between you can be amended as mortgage rates and circumstances change.

They told me it was my responsibility to inform them of a change of circumstances.

The lender wont inform the insurer of the amounts. They are not allowed to.

I paid £600 to my bank to sort out administration three years ago the last time I fixed the mortgage.

That was the mortgage. However, it would not change the insurance.

As it's a joint account my wife who is part time is only entitled to 16% of £220.

It is not linked to your account. The percentage split is chosen by you on application.

and the thing which tipped my lid was they implied it was my error as I didn't inform them.

Unfortunately, it is up to you.

That said, the banks are rolling over very easily on complaints at the moment. So, you may succeed. However, fundamentally, it is you that controls the amounts and ratios on insurances set up. That is across the board.

kippaxman

Quote:
As it's a joint account my wife who is part time is only entitled to 16% of £220. It is not linked to your account. The percentage split is chosen by you on application.


They told me today that I had to add mine & my Wife's income as its a joint account and as its her claim work out the percentage of her earnings from that account then that would be her entitlement of the £220 MPPI


I understand your point about who owns my money and I agree that perhaps I should've read the ink off the inch thick mortgage agreement but you should factor in the which ever organisation takes your money has a duty of care to be honest and transparent regarding the financial ramifications. Clearly my Wife & I were of the same opinion when we added the MPPI that it would cover our mortgage if one of us should get injured, ill or unemployed for a fixed period of time. In fact we took it out when I used to pay football a very long time ago to protect us from that type of incident. I have never claimed for anything in my life and am definitely not that sort but I really feel cheated by this system. Why would the bank sell me mortgage payment protection and be quite happy to accept my direct debit for many years when clearly the cover we had wasn't good enough.

dunstonh

They told me today that I had to add mine & my Wife's income as its a joint account and as its her claim work out the percentage of her earnings from that account then that would be her entitlement of the £220 MPPI

That doesnt sound like MPPI. With MPPI, it has nothing to do with your current account. You set the monthly income amount and the split between you. You cannot have more than you earn but you decide the split. That said, bank products are often cut down versions of the whole of market product and more expensive. So, anything is possible.