Mortgage payment protection

Retired_I.F.A.

Dunstonh is spot on. A PHI policy is whats needed here and an IFA is the best place to find the most suited one.

PHI is the most undesold product of any yet it's the most valuable of all as ones ability to earn an income is the most valuable asset the vast majority of us will ever have. Take away that ability and the PHI will continue to pay an income till you retire or recover or even continue to pay out some portion should you be foced to take on a lower paid job. For Joe Bloggs say around 30 a claim could pay out a million or two quite easily.

Premiums depend on the defered period age and the occupation as well as the term chosen / retirement date. yet often work out to be akin to the sickness accident and unemployment policies which cease after two years of a claim.

Remember to make sure the payment in claim is indexed it's far far better than a indexed sum assured which is level in payment.


By now you can no doubt tell I used to love selling PHI somehow I'd get a kick out of brokering the best policy and working out the maximum payout with inflation at x% for a client and comparing it to the premium let alone pointing out the odds of a claim compared to life insurance. Yeah A mobid git I may be but there are a few in wheelchairs today that shake my hand off when I see them.

edwardlang

No-one seems to have given you a straight answer. You should look at this site

www.paymentprotectioninsurance.uk.com

They offer cheap cover and the service has always been great.

I just checked and for your £450 a month for accident and sickness only you would pay £10.58 or £9.00 depending on how long you want to wait before they paid a claim

dunstonh

No-one seems to have given you a straight answer. You should look at this site

You havent either. You too have promoted an ASU product and not a PHI product. The OP has made his circumstances clear and ASU is not the most suitable product.

Sterlingtimes

It's a huge problem being asset rich and income poor. I lost my job some years ago when the dot.com bubble burst.The asset rich can expect little from the State - they even offset my mortgage-linked PEP against any benefits that I might have received. Fortunately, I had my mortgage and some subsidiary expenditure insured and I had ticked the insurance box when I had secured a loan. The insurance income was nothing like enough to tide me over the bad times but it prevent me from having to sell assets.

There may be a few ultra secure job, e.g. General Practitioner, but most of us are exposed to some risk of redundancy. But no one is insulated from ill-health even if they eat five fruits and vegetables every day.

For me PHI and redundancy insurance together allow me to live with a lot less worry in life. It's absolutely essential when insured, however, not to entertain anything that may sniff of voluntary severance - cash handouts can be very tempting.

Pew_Pew_Pew_Lasers! wrote: »

Dole ... blimey, I've never claimed it. Had income support while I was working in a pub in a gap year, but I've never even had a full time job. I cancelled it because well, frankly, I'm in perfect health and always have been. Never had a day off work sick ever. It would have to be something quite severe to stop me working

shelovestobuystuff

Looking for some advice on mortgage payment protection insurance.We apparantly have it although we didn,t know we did.It looks like we must have agreed to it at the time of taking out the mortgage initially,I suspect it was a presecquisite to getting the mortgage.Anyway the way they bill it is they add on the total amount of insurance due for the year(just over £400) onto the amount owing on the mortgage at the beginning of each year so does that mean it is then charged at the mortgage interest rate also?
Another question is do we need it at all?If hubby is sick he will get full pay from work,if he is unable to go back to work he can get enough out of his pension plan early to pay off the mortgage and if he dies the insurance will pay off the mortgage.Any way I look at it I really don,t see the need for the insurance at all.
Advice please.
Would the bank be able to insist that we had some sort of insurance for this or could we just cancel it.
Theres also a paragraph in the agreement which says if we wish to cancel and take insurance elsewhere it can only be done when the policy is automatically renewed in May otherwise they can charge the equivalent of 1 years insurance plus administration fees.Doesn,t seem fair.But why am I surprised,after all its a bank.

edwardlang

Sorry - would have to disagree - the very first thing Pew Pew says is he wants to cover a mortgage payment of £450 - i.e. payment protection - nowhere does he mention PHI - maybe you are right in recommending PHI but it is not what he asked for

dunstonh

maybe you are right in recommending PHI but it is not what he asked for

It is what is asked for. Maybe not in name but it is in terms of cover.

PHI would trounce an AS (minus U) and there is no point paying for something that is useless.