Are we wasting our money on MPPI?

mummyemmy

Currently we are paying about £30 a month for Mortgage Payment Protection Insurance with Norwich Union. This covers us for acident, sickness & unemployment with a self-sufficiency period of 30 days.

I have very good terms of employment, if I was to be made redundant I would get a very good pay off and plenty of notice get 6 months full pay, then 6 months half pay.

My husband on the other hand, would not get a very good pay out if made redundant just statutory, sick pay is a week for each year he has been with the company (6 years) then statutory. He is in the type of job where he could do agency work if suddenly made redundant so he wouldn't be out of work for long.

Are we wasting money?? If so should we be covering ourselves in different ways?

We have life insurance in the event of death plus my company would give him 4 times my salary if I were to die.

Advice please???

dunstonh

I have very good terms of employment, if I was to be made redundant I would get a very good pay off and plenty of notice get 6 months full pay, then 6 months half pay.

MPPI is a waste of money for you as the 12 month period it covers is more or less matched by employer.

Are we wasting money?? If so should we be covering ourselves in different ways?

In both of your cases PHI (permanent health insurance) seems the better option. The deferment periods can match employer benefits and the period of cover can go to your selected retirement age (65-68 depending is most typical nowadays to match state retirement age, whichever yours is).