Mortgage-Payment protection? to have or not to have, and how much is too much?

PrincessJR

Hi All!

we are FTB and our mortgage is still going through, we have had a quote from 'Payment shield' after they were passed our details from our brokers London and Country.

They have quoted us £52.00 per month for cover of a monthly repayment of £985 + £246 (£1231 per month total).i.e. if we were made disabled or unemployed they would pay us £1231 per month.

Is this a reasonable price per month? its more than we expected.

Also, do all companies vary when it comes to how long they will pay out for or is there a set time frame? (6 months, 12 months etc??) Does it apply if just one of us becomes unemployed or does it have to be both?

Thanks for any help you can offer

PrincessJR
xxxxxx;)

rachaelself

Hi, i'm not sure if this will help but i'll just tell you what i've found out myself.

Me and my partner are FTB and our currently going through getting a mortgage process. When we were at the appointment with the financial advisor he gave us prices on a couple of companies - one of them being Legal and General - this came out as £50 for my partner and £40 for me. per month. I'm 23 and he is 26 - so god knows how much it will be when we get older. So I shopped around on Money Supermarket and got cheaper quotes like £11 - £17 pound a month each (although this one you had to be a work for 6 months after you took out the policy to be eligble.)- some of them having a longer qualifying period like you say 3/6/12 months.

Our mortgage will be £877 a month and as this is already quite exspensive so we are not going to go with the more exspensive insurances at the moment until maybe our financial situation changes.

Also our financial advisor was trying to flog us insurance for critical ilness and unemployment and then another one for death - something like that - but I looked on the internet and found ones that do them all together.

Have a browse through this website as I have found it very very helpful!

dukesy_2

Having had this for years...I have yet to find anyone offering as good value cover (but make sure tis right for YOU!) than ANTINSURANCE

BIG difference is most people offer MORTGAGE payment protection insurance,. but what about all the ohter bills ?? (Council tax, endowments, insurances etc)

ANT insuarance offer "income protection" not just payment insurance

http://www.antinsurance.co.uk/

(and NO ...I do not work for them )

PrincessJR

thanks so much for the ANt Insurance details! just checked them out and V impressed!
Think we will be using them.

LOVE THIS WEBSITE!

Thanks again:D

spurs_nut

dukesy wrote: »

Having had this for years...I have yet to find anyone offering as good value cover (but make sure tis right for YOU!) than ANTINSURANCE

BIG difference is most people offer MORTGAGE payment protection insurance,. but what about all the ohter bills ?? (Council tax, endowments, insurances etc)

ANT insuarance offer "income protection" not just payment insurance

http://www.antinsurance.co.uk/

(and NO ...I do not work for them )

Recommended by martin himself!

homer_j_3

My views are well known on here about the need for full protection on your mortgage.

My only question for you would be is what is your sick pay at work because you may not need this insurance to start from month1.

These policies are good for people with high risk jobs like scaffolders or the police where the occupations are considered high risk through the nature of them. These ASU policies are not based on that risk because they only cover for a period of time (normally 12 months but some upto 24).

There are other policies that might work out cheaper if you design it to tie in with your other benefits and will continue to pay out until you return to work, regardless of time.

foreversummer

Hi

Does anyone know the rules for Company Directors? My husband takes a low salary and the rest of his income is dividends. Does the 75% apply to both salary and dividends or just salary?

Foreversummer

homer_j_3

http://www.antinsurance.co.uk/self_contract.html

dunstonh

antinsurance is just simple ASU. It isnt proper income protection (PHI). So, make sure it covers what you want and do not mistake it for proper underwritten plans. Self employed individuals in particular are usually better off with PHI.