Does a policy sold with a mortgage qualify as PPI?

Londongal61

Hi
I have been wondering about this for a long time. When I took out my mortgage, 20 Years ago, we were told by a broker that we had to have an insurance policy too. I have been paying this since, did I really need it? Well my husband had an operation a few years ago and he could walk for three months. When I called the insurance company to see if we qualified for anything they pretty much fobbed us off. I had understood that was what the insurance was for, if one of fell ill and could not work, or died. Any thoughts?

Londongal61

Should read "he could not walk for 3 months". (Always preview posts)

Nearlyold

Londongal61 wrote: »

Hi
I have been wondering about this for a long time. When I took out my mortgage, 20 Years ago, we were told by a broker that we had to have an insurance policy too. I have been paying this since, did I really need it? Well my husband had an operation a few years ago and he could walk for three months. When I called the insurance company to see if we qualified for anything they pretty much fobbed us off. I had understood that was what the insurance was for, if one of fell ill and could not work, or died. Any thoughts?

You need to look at your policy documents to see what cover it provides, it may be life cover only, life and critical illness cover, or life, critical illness and mortgage PPI or any combination or single component of these. If there is no PPI element then it wouldn't cover your husbands time off work.

boam

PPI and MPPI are different, have a read of this, may explain it better.

http://www.theguardian.com/money/2012/may/05/homebuyers-shun-mortgage-protection

Regards

Mark

magpiecottage

It could be all sorts of things.

It could be PPI if the operation was not needed for medical reasons or if it had a waiting period of three or mor months.

On the other hand it could be something completely different.

dunstonh

When I took out my mortgage, 20 Years ago, we were told by a broker that we had to have an insurance policy too.

1 - quite possibly a requirement. Life assurance 20 years ago was frequently required by lenders. Some MPPI cross subsidy deals exists. Or it could be the brokers pricing model required it (which is allowed)
2 - what insurance are you on about?

When I called the insurance company to see if we qualified for anything they pretty much fobbed us off. I had understood that was what the insurance was for, if one of fell ill and could not work, or died.

There is no one policy that does all those things. You have life cover, critical illness cover, income protection and MPPI as the main types of policy that are available.

Really, we need to know what the policy covered.

However, even then it is largely irrelevant as insurance was not regulated 20 years ago.