payment protection insurance

hyposmurf

Where do I start with this?I looked around when I took my mortgage but thought I had enough savings to get me by over a few months if I was out of work.Now changed my mind.Few questions
I found that some of the insurances I looked at before didnt pay out for a number of weeks and then they only paid out for a limited period.
Some policies need a 6 monthly preceding payments before any cover can be claimed.Would I need insurance with no excess period
How do I work out how muh cover I need?Work out all my outgoings including utility bills etc then multiple it by a factor,say 1.5%

Im currently paying part rent/mortgage so I'd need cover for my rent to.All my outgoings I'd say are about £1300 a month.I'd prefer an insurance that instantly covers me for unemployment.

Edit:
Also looking at the small print of many policies they wont pay out if your out of work less than 30 days.Some dont pay an awfull lot in relation to the monthly payments.In two years paying out for the inurance I couldve recoupe what I could claim.Is it likely I would be without work for longer than a month?Im beginning to get put off by this insurance again.

hyposmurf

OK I answered my own question.
From which website:
http://www.which.co.uk/reports_and_campaigns/money/campaigns/payment_protection/our_campaign/ppi_wrong_559_124079.jsp

And to make matters worse the OFT found only 20% of the money collected in premiums is ever paid out in claims. That’s a shockingly low figure compared to other general insurance products such as car insurance, where 82% is paid out, house insurance at 54%, pet insurance at 72% and medical insurance at 80%

Oscar_The_Grouch

What you have to remember here is that the companies selling this type of insurance take a HUGE commission and then hit the insurer for profit share too. In reality, the insurer makes very little and the broker (usually a bank) gets the lions share of the profits.

Personally, I don't have any PPI cover and if I did, I would try to buy direct from the company rather than the bank.

_Andy_

You'd be better off looking at a decent quality PHI (Permanent Health Insurance) policy than a cheap payment protection one.

dunstonh

PHI beats ASU hands down. Yet most people seem to go for ASU despite its awful claims record.