2008 MFW newbies

Jay1_2

Thanks bellsbells.
And has anyone any thought on this? I can't make a decision whether I need this insurance... Its mortgage protection against accident and sickness - my job gives me six months full pay and sixs months half pay (and if I'm still not back I think its six months full pay again and so on). It doesn't cover me against losing my job although the council couldn't afford to make everyone at my level redundant. And then because its shared ownership I would still need to find the rent. So I sort of feel I don't, but cancelling it would feel like I was inviting trouble... Any advice welcome.

I've already asked on another thread so apologies if you read it there.

Jx

Daft_Pegasus

Jay1 wrote: »

Thanks bellsbells.
And has anyone any thought on this? I can't make a decision whether I need this insurance... Its mortgage protection against accident and sickness - my job gives me six months full pay and sixs months half pay (and if I'm still not back I think its six months full pay again and so on). It doesn't cover me against losing my job although the council couldn't afford to make everyone at my level redundant. And then because its shared ownership I would still need to find the rent. So I sort of feel I don't, but cancelling it would feel like I was inviting trouble... Any advice welcome.

I've already asked on another thread so apologies if you read it there.

Jx

Unfortunately only you can decide whehter or not this is right for you. IMO if you have 6 months salary and then 6 months on half pay this will give you enough to cover you in the worst case situation. I have nowhere near that level of salary security with my job but still would not pay this 'insurance' because I'd look to my savings to provide the mortgage in the initial event of me being unable to work.

I admit I take a risk because if I couldn't work for 6-12 months then I'd be in trouble but it's a risk I'm willing to take.

Hence only you can decide what level of risk you're willing to take, but I'd suggest, that you have a lot more income protection than most. Remember also that if they make you redundant then they'll also have to give you a redundancy payout.

Floxxie

Jay1 wrote: »

Thanks bellsbells.
And has anyone any thought on this? I can't make a decision whether I need this insurance... Its mortgage protection against accident and sickness - my job gives me six months full pay and sixs months half pay (and if I'm still not back I think its six months full pay again and so on). It doesn't cover me against losing my job although the council couldn't afford to make everyone at my level redundant. And then because its shared ownership I would still need to find the rent. So I sort of feel I don't, but cancelling it would feel like I was inviting trouble... Any advice welcome.

I've already asked on another thread so apologies if you read it there.

Jx

Suggest you have a chat with an IFA who will review your situation and advise you on what you do and don't require.

Floxxie.

torbrex

Jay1 wrote: »

Thanks bellsbells.
And has anyone any thought on this? I can't make a decision whether I need this insurance... Its mortgage protection against accident and sickness - my job gives me six months full pay and sixs months half pay (and if I'm still not back I think its six months full pay again and so on). It doesn't cover me against losing my job although the council couldn't afford to make everyone at my level redundant. And then because its shared ownership I would still need to find the rent. So I sort of feel I don't, but cancelling it would feel like I was inviting trouble... Any advice welcome.

I've already asked on another thread so apologies if you read it there.

Jx

I had this type of insurance and mine also included cover for redundancy. The very first time I tried to claim off it after being made redundant, there were so many barriers and obsticals put in my way that I gave up and just cancelled it without receiving a penny. Luckily I got another job quite quickly and was able to put the £13.75 towards my overpayments, I just wish that I had done it 10 years ago.
But as DP says it is your choice.

bellsbells

Jay1 wrote: »

Thanks bellsbells.
And has anyone any thought on this? I can't make a decision whether I need this insurance... Its mortgage protection against accident and sickness - my job gives me six months full pay and sixs months half pay (and if I'm still not back I think its six months full pay again and so on). It doesn't cover me against losing my job although the council couldn't afford to make everyone at my level redundant. And then because its shared ownership I would still need to find the rent. So I sort of feel I don't, but cancelling it would feel like I was inviting trouble... Any advice welcome.

I've already asked on another thread so apologies if you read it there.

Jx

This is a tricky one - but 6 months full pay is a lot, and six months half pay is not bad either! I suppose the slightly morbid but practical way to look at it is like this. If you are off work for a very long time - ie over 6 months there is a chance you have done something seriously wrong to yourself or have something serious. At that point life insurance might kick in anyway. So if you are only off work for a bit you have sick pay, and if you are going to be off long term the chances are it might be covered by life insurance. I hope this makes sense - I am by no means an expert on this!

belfastgirl23

Jay1 personally I don't really think its worth it going for this kind of insurance unless you work somewhere with very poor T&C. I know that overpayments into my mortgage can be drawn down again if necessary. I can also take a payment holiday for up to a year. I figure in the case of redundancy I'd always get some sort of a job to cover basic living expenses. And in the case of illness I have the same cover via salary as you do. Plus coverage via my pension as well. So I'd rather put the £ into my mortgage. Or even into health insurance to make sure if the worst did come to the worst I could be treated quickly

The only reason to think of it is if you have other people who really depend solely on you I would think...and even then I'm not convinced the sums would add up.

Jay1_2

Thanks for your opinions - I had pretty much decided to cancel (was planning to do it this lunchtime but then couldn't), but its nice to have a 2nd (3rd 4th...) opinion.

SPL

Jay1

Thanks for posting about the insurances as you have set me thinking about our own and whether it would balance out in terms of being worth it - you might just have freed up some extra cash for me there - all towards the mortgage of course!!

hummingbird

Hi again everyone - well my house purchase completed today:j So I also have my new mortgage to go with it!! It's great to be thinking of overpaying right at the beginning though. I'm in the same position as you Jay1 as it's 50% shared ownership.....and I also need to get some furniture together!! I've been left the washing machine, fridge-freezer & cooker though so that's a start.:T

thriftyget

Hummingbird,

Its amazing how a relatively small amount extra at the start of your mortgage can make a vast difference to the term. In our case an extra £100 per month meant that we knocked 5 years off the term and were projected to save £22,000 in interest!!!
Whatever you can afford it is the best time to get overpaying.