Do we need mortgage protection?

gilly41

We are moving in 2 weeks and I am just going through all our finances to make sure I have everything cancelled that needs to be and any new things sorted out.Anyhow I have just come across the mortgage protection cover that we have. At the time we decided to take it to just cover unemployment as my OH(earns a lot more than me) is paid if he is off sick (obviously subject to medicals etc) and this is for as long as it takes to recover as his mate has had 18 months off on full pay(not that OH is about to take time off sick!!!). I have been thinking whether we should have cover when we move as, if OH was made redundant he would get a good pay off as he has been in his job since he left school 32 years ago and it is a good company.Our mortgage is going to be increasing slightly so the £9.80 a month we pay now would maybe become something like £13 a month. I know that over a year it is quite a decent amount if we dont need to have it.What does anyone else think? Do other people have cover even if they know they would get a good payout if they were made redundant.Thanks everyone x

CharliesAngel

Hi gilly41

I live on my own and have a decent sized mortgage. I would never buy mortgage protection insurance either! They tend to list conditions in such a way to avoid pay outs at times of need and it is often sold to increase profits IMO...

I also think if your OH were to be made redundant, the pay off would cover things for a while, and if you were to be off sick long term, you'd also be covered. It sounds like you'd be over-insured if you were to take the mortgage companies insurance too!

CA x

Kate1983

I have just cancelled the PPI on my mortgage. You can get income protection insurance much cheaper with a separate company - see Martin's article on cancelling PPI.
Kate
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