Does Mortgage protection need to be in joint names??

SJP

Hi I'm hoping that you can help...

I'm looking into all our insurances at the moment as we have just taken out a home improvement loan, without protection.

I've already taken advice from here about seperate life and income protection insurance, so have sorted Life Assurance, now I need to sort mortgage (and loan) protection and income...

Our current mp is in joint names (as is the mortgage and loan) and i'm sure it will pay out on 60/40 split. Is this necessary?? Or would it be better just in hubbies name, as he's the one that pays it? If its needed, where can i buy it???

Also can I have both income protection and mortgage protection???

Thanks for any help that you can give me, sorry if i'm being dense....:rotfl:

dunstonh

Also can I have both income protection and mortgage protection???

You can mix and match permanent health insurance (if that is what you mean by income protection) and mortgage payment protection but the amount being covered shouldn't be any more than 75% of your income. If it is, any claim will be reduced. Some will only go as far as 60% so dont waste money taking on more than you are allowed.

SJP

Thanks for that.

Is PHI a insuarance that guarentees you income if you're ill etc??

So we're as well taking one of those out each and letting the joint MP go?

Is there any other insurance that we could take out to cover everyday bills is the worst happens???

dunstonh

PHI is proper income protection. It is underwritten to your health, occupation and circumstances. Mortgage payment protection isnt.

Mortgage payment protection includes unemployment cover but PHI doesnt. MPP goes for 12 months typically (although 24 is possible). PHI will go upto the specified end date. Typically you set retirement age as that.

Out of the two, PHI is more comprehensive with the exception of unemployment. You can get standalone unemployment cover though if you want to mix and match or you can set the deferment period on the PHI to be 12 months. That would kick in when the MPPI stops. That way you get the best of both.

SJP

Great thanks.

Do you know of any websites where I can purchase PHI? The ones i've seen are offering 12 months cover, is this the norm??

dunstonh

PHI doesnt have good internet coverage. The 12 month cover is not PHI but cut down income protection.

PHI is low profit, has 3 levels of cover and has a longer application. Plus some plans fall under protection classification and some under investment (full regulation) classification. Many websites dont carry the latter authorisation. It isnt an ideal internet product.