Mortgage / Income Protection Insurance?

ToejaM

ToejaM

ToejaM

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Anyone have any words of advice for this?

Thinking of getting something to cover the mortgage payment protection. Even though I told my work I'm planning on joining the military.. I've got this feeling they will use that as an excuse to get rid of me, especially when similar stores around here open removing business from them but thats another story.
 
ToejaMz0r said:
Anyone have any words of advice for this?

Thinking of getting something to cover the mortgage payment protection. Even though I told my work I'm planning on joining the military.. I've got this feeling they will use that as an excuse to get rid of me, especially when similar stores around here open removing business from them but thats another story.
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Words of advice about what? I took some out when we bought this place in June, I've survived 3 waves of redundancies so far and although it's picked up a bit we've only got a couple of months booked work so made sense. I pay £11 a month, if i need to claim I'll get £890 for up to 12 months.

Speak to a financial advisor/broker, they will be able to point you at the deal that suits you. Bear in mind, most have a minimum period of cover before they will pay out to stop folk getting it just before they get ditched. In my case as I arranged it with my mortgage, I had back to day 1 cover so could have been laid off 2 weeks later with 1 premium paid and it would have kicked in.
 
Windle said:
Words of advice about what? I took some out when we bought this place in June, I've survived 3 waves of redundancies so far and although it's picked up a bit we've only got a couple of months booked work so made sense. I pay £11 a month, if i need to claim I'll get £890 for up to 12 months.

Speak to a financial advisor/broker, they will be able to point you at the deal that suits you. Bear in mind, most have a minimum period of cover before they will pay out to stop folk getting it just before they get ditched. In my case as I arranged it with my mortgage, I had back to day 1 cover so could have been laid off 2 weeks later with 1 premium paid and it would have kicked in.
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Does you redundancy package payment not have to be exhausted before you can start claiming on most policies?
 
We didn't take any income protection insurance out when we got our place nearly 2 years ago. We have 3 months mortgage in an account just in case we both lose our jobs at the same time but we both do work that is in demand.
 
Took mine out soon as I had my first mortgage payment, just incase I do loose my job. I live by myself and dont have anyone else to fall back on if I did so it was a good idea.
 
cm1179 said:
i didn't bother, i rarely bother with these type of things as i don't feel confident in them paying out.
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This is exactly the same for me.

Been in my house nearly 2 years now, considered "Payment protection" insurance but after some investigation and word of mouth - it seems that most get shafted when in need of a payout.

Fine print reading/checking is an ultimate must with things like this.

I've heard that most mortgage providers are actually quite reasonable if you call and explain any unexpected situation you are in.

Finally, I have always had savings which would do me at least 3 months mortgage payments should me or the O/H loose our jobs.
 
Knubje said:
I've heard that most mortgage providers are actually quite reasonable if you call and explain any unexpected situation you are in.
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they are. believe it or not, the last thing a mortgage company wants to do is have a default and repossession on their hands. they will help with rest periods should you hit troubled times. it is always a good idea to save for these kinds of situations too.
 
Windle said:
Nope, my cover kicks in as soon as JSA starts.
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And you wont get JSA if the redundancy payment exceeds the stautory amount (£2500 last time I checked but I know the government were planning to reduce it) :-)
 
Some mortgage protection schemes only last for a limited period, say 12 months and you can't incept them immediately.

Does your mortgage lender provide an overpayment scheme? ING for example, allow to to make an over payment each month into an emergency pool. This is offset against the mortgage so is actually bringing term of your mortgage down and saving you interest at the time as offering piece of mind when you've accumulated a decent reserve.
 
I didn't take Income Protection Insurance when I bought my home in Dec 2009.
Fast forward to march 2011 and my 8 year career ends through "Compromise Agreement" :mad:

Luckily I got a decent enough financial package (around years wage, tax free), and had kept plenty of inheritance money tucked away.

I'd hazard a guess though the any income protection scheme won't pay out if job ends via a compromise agreement.

I do have critical illness and mortgage life cover. However since I had mental health issues in the past there is a long list of illnesses which they won't pay out for. :mad:

Basically I think any insurance scheme will try and avoid paying out whenever possible.

However when I lost job in march I did contact the mortgage company saying that although I have lost work I can still afford to pay the mortgage, hopefully this will help later on if I need to increase mortgage term or have to go to interest only payments.

Luckily I'm now a student, so my college bursary is able to cover mortgage + household bills! Will probably need to find part time work soon though.
 
ristac said:
Don't they only pay the interest for a maximum of a year?
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if you switch to a interest only mortgage then you'll pay a chunk less short tem for as long as you stay on that mortgage.

Banks are actually very receptive to not kicking you out of your house. Its because they love you and want you to be happy. Or because they want more money. I forget which.

If you call the bank as soon as you know you are going to be in trouble then they will do whatever they can to help you. Some allow payment holidays completely.
 
Windle said:
Words of advice about what? I took some out when we bought this place in June, I've survived 3 waves of redundancies so far and although it's picked up a bit we've only got a couple of months booked work so made sense. I pay £11 a month, if i need to claim I'll get £890 for up to 12 months.

Speak to a financial advisor/broker, they will be able to point you at the deal that suits you. Bear in mind, most have a minimum period of cover before they will pay out to stop folk getting it just before they get ditched. In my case as I arranged it with my mortgage, I had back to day 1 cover so could have been laid off 2 weeks later with 1 premium paid and it would have kicked in.
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Sounds overly cheap for that level of cover to me.

But back to OP
as others have said, small print small print small print
normally your not covered unless its redundancy, variable minimum periods before they pay, you cant be self employed, you have to be made redundant, ie no voluntary, you cant be dismissed for any reason -> only redundancy, you normally have a cooling down period of about 3 months when it wont kick in after you have take it out (blame companies that started giving long notice before redundancy)

If your happy the small print is fine then go for it, but be very certain your covered. Like all of these types of product they cover very specific events and you have to be 100% upfront and honest or you may find they have a loophole.
 
Thanks for the helps people, if I go for anything I'll make sure it covers being dismissed. I havn't done anything wrong but its always best to be prepared I feel.
 
I looked into it, but, like a few others here, after reading the small print, you need to shell out a lot of money to get worthwhile cover imo.

In the end we've just put a few thousand aside incase something does happen. That should keep us going for a few months if one of us lose our jobs, hopefully during that time we'd find something to keep us going.

One of the plus sides of not being on great money is even a minimum wage job would be enough to keep us ticking over and paying the bills. Just no luxuries.
 
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