Mortgage/Life/Criticial Illness/Income Protection insurance question

Marcel

Marcel

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Marcel
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Simple question....Worth it?
Simple opinions really. I suppose it's with all insurance, it's a cost to risk ratio.

Life cover is a given, but myself and my wife are in our early 30's. 25 year mortgage....critical illness *really* necessary? Especially when it adds yet another 20 odd quid to the premium.
Then there's income protection which gives only about 600 quid per month......that's another tenner premium...

Adds up doesn't it?

So simple opinions though. Some people have said life only...some people have said they wouldn't feel comfortable with the full lot..

Just wanted to gauge the opinion of those on here :)
 
Who you getting it through? Commision on insurance is Mahoosive! so shop around. No one can insist that you take their insurance products to ensure any financial product acceptance.
 
It's a quote from the Mortgage Advisor.
Basically £25 a month (ish) for myself and my wife.

I've done some shopping around and it's pretty much on a par with what we've been quoted.
 
Been there done that, be prepared for a premium hike when you hit 40 and then again when you reach 50.

I stopped mine when a mate had a genuine claim and they sent him to 3 specialists before they paid out. He had huge probs getting it sorted, taught me a lesson.
 
This is my problem. Ive read of many tales of them wriggling out of payments etc on small technicalities, so Im left wondering if it's actually worth it.
 
It is a minefield. A lot of the income protection ones have been found to be very difficult to claim under. Critical illness again depends on the policy and what your employer will give you. It is all horses for courses, but do a bit of googling and see what people say. suggest you start with money saving expert. Good luck
 
I've been told that the cover that your mortgage provider supplies isn't up to the job. There is an awful lot of small print to read on T&C's and there is so much red tape to cut when claiming.

Further more people make the simple mistake of taking the critical illness cover and thinking everything will be rosie! Yes it will cover your mortgage but it doesn't cover your bills, and they don't stop when you get ill.

Sound advice I was given was to seek your own personal life insurance and cover which is tailored exactly to your needs in the event of something happening.

In short everyone should have some sort of cover but steer clear of the ones mortgage lenders offer as they are not value for money.
 
After the market crashed a couple of years ago my premium doubled! Only income protection and I'm paying about £35/m for £1100!

Grudge it but would be handy if I do lose my job! Just a bit of peace of mind.
 
Marcel, feel free to PM me as I advise on this. I won't sell to you (can't be bothered with the non-face-to-face process) but will be honest and take you through what you need to know.

You are FAR more likely, statistically, to make a claim under CI at your age than under life cover - which is why you see the increase in cost.

ETA - I do not advise on ASU insurance
 
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Just have to make sure you lose your job in the rigt circumstances.....
 
If the funds allow, I'd rather pay and have the piece of mind that things will be covered.

My husband took a heart attack at Christmas and even though we'd got all off the above mentioned, I didn't give it a thought about claiming for the 3 months he was off work. It was only when the lady at the Leeds and Holbeck building society asked if I'd submitted a claim did I then set about it. Had no problems in claiming his half (joint mortgage) back. The only objection was having to pay for the doctors signature on the paperwork :thumbsdown:

Thankfully the MuchBeloved is better and has returned to work albeit light duties.


Di
 
I did some work with some insurers who offered this type of product a few years ago.

The one thing it taught me was to do your research before you buy to make sure that you are a) buying what you need and b) buying the product that you think you are.

In terms of buying what you need, your mortgage provider will probabally be giving you a big sell on taking out MPPI. But if you have a relatively small mortgage payment and both you and your other half have well paid jobs, for example, do you really need it? Likewise, I remember when I took out my first mortgage I was sold an income protection policy - it was only later that I realised that having no family, if I was too unwell to work I wouldn't need anywhere near the amount that it would be paying out!

In terms of making sure that you get the product that you think you are buying - do take the time to read the small print to make sure that you get the right policy for you. Most policies, for example, exclude people who are self employed. Likewise, any medical problem that you may have had in the past could exclude you, so make sure that before you buy you read the terms and conditions thoroughly.

I'm not in anyway trying to defend the insurance industry and any shoddy practices, but I was also told (anecdotally) that that a greater percentage of MPPI claims are upheld than car insurance claims and that that premiums have increased significantly over the last few years because there are now far more claims. Again, it may have been firms also trying to talk prices up, but they did comment that the cheaper the policy, the greater the number of exclusions.
 
Total waste of money! Have you ever seen a poor insurance company?
 
When I got my first mortgage aged 22 the advisor at the bank tried to flog me a life insurance policy - she thought at that tender age, just married with no kids I needed to be insured for £9m!!!!!!!!!!!!!!!!!!! The mortgage was £70K and I didn't earn enough at the time to pay back my student loan.
 
You have to ask yourself 'what is the worst that could happen'?
 
I had critical insurance in with my life insurance from well known Scottish assurance company. When I had my heart attack (minor one) it caused a little damage to the heart muscle as all heart attacks do (I was lucky) Made a successful claim on my critical insurance and it was enough to pay off my mortgage...And get a new camera :) The company couldn't have been more helpful in the claim process, and certainly did not try to wiggle out of paying in any way.
Providing your truthful with your claim they will consult with the quacks and you should have nothing to fear. My policy covered quite a number of things, MI 2 stents inserted into your ticker at the same time qualified for a claim.

If I hadn't had the CI when I had the heart attack 2.5 yrs ago I'd be in ******
street now.

I took mine out in my 30s and the price remained the same in my 40s and 50s, as someone else said shop around. Watch these income protection, if you get fired from the job they don't pay if your unemployed, redndancy and your payments can be reduced or nil, read the small print carefully.
 
awp said:
Total waste of money! Have you ever seen a poor insurance company?
Click to expand...

No but I have seen people go broke because they didn't have any insurance...... Yes they make a lot of money but it's down to how you view risk.
 
frank said:
Watch these income protection, if you get fired from the job they don't pay if your unemployed, redndancy and your payments can be reduced or nil, read the small print carefully.
Click to expand...

I dont know of any insurance policy that will payout if you have been fired. Thats your own fault, not the same if your made redundant or genuine illness.

As for the type of policy the op is looking for, who are you looking at to provide the cover? Some are better than others in terms of what they cover and claims reposnse.....

Just to add, i work in the secured loan sector and yes these policies have had a bad rap, mainly due to poor pracitces back in the mid 2000's and some instances of blatent mis-selling.

Now, recently, there have been a spate of deaths where the loan they have taken out, secured on the family home havent had the benefit of an inurance policy.
In short, the house has to be sold and the family uprooted and moved to a "smaller" house just to ensure they can continue to be under one roof.
Granted this is an extreme circumstance, but still, is "X" amount per month really worth not paying out, compared to the impact not having the policy will have on your family?
 
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We had critical illness and life on our mortgage. When Paula was diagnosed with MS 18 months ago I discovered that the critical illness was the worth every penny. It has paid out and at 37 I am now mortgage free. I would rather pay the mortgage for the next 50 years than have Paula struggling as she does but it has made things a lot easier.

For those who think critical illness is a waste of money - how do you know that you are not going to be ill and have to give up work? As with all things it is a risk and you pay your money and take your choice. I would certainly take the critical insurance if you can afford it as you don't know what the future holds.

Nick
 
Tractor Boy said:
We had critical illness and life on our mortgage. When Paula was diagnosed with MS 18 months ago I discovered that the critical illness was the worth every penny. It has paid out and at 37 I am now mortgage free. I would rather pay the mortgage for the next 50 years than have Paula struggling as she does but it has made things a lot easier.

For those who think critical illness is a waste of money - how do you know that you are not going to be ill and have to give up work? As with all things it is a risk and you pay your money and take your choice. I would certainly take the critical insurance if you can afford it as you don't know what the future holds.

Nick
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Couldnt agree more.

Id rather have the policy purely for the "what if" moments.
 
Marcel said:
This is my problem. Ive read of many tales of them wriggling out of payments etc on small technicalities, so Im left wondering if it's actually worth it.
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This is the reason I did not go for it myself if you don't fall into there narrow band of conformity then as well as the illness you have to fight the policy and who would have the strength for that.

Blood sucking vultures springs to mind.

But there is no alternative


It's good to see the system work as in the case above but wriggle they will, it's there job to get out of it.


Merc

Sent from my iPad using TP Forums
 
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3years ago, I was going to cancel my CI policy when shortly before the cancellation date I was diagnosed with a serious illness. As soon as all the medical documentations was completed the money was paid in my bank and now thankfully i am back to full health and mortgage free. Take CI if you can afford it, you don't now what tomorrow is made of.
 
Well, having got PPI on my £29K mortgage I took out in 1995 (bought the house I still live in from the council), I'm glad I have because I've just got made redundant so I can relax knowing I won't lose the house - although the claim benefit only lasts for two years and then I'm back on my own.
As for the life cover aspect, that I'm not so sure as at age 45 I like to think I'm in pretty good health (the only meditation I've ever taken in all my life is the odd headache tablet here and there).
But it's like what others are saying, there's always those "you-never-know-what-if" moments and I don't really like to leave things to chance.
Of course, they're more than happy to have your custom and take your money, but when it comes to making a claim - like what I'm trying to do - it's like taking blood out of a stone!
 
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Well, after today's attempt to make a claim on the PPI connected to my insurance, this is what I've found out; the insurance company now expect a letter from me every month showing proof I'm looking for work before releasing the fund to me and have to do that on a month-by-month basis. Apparently it's part of this government scheme to get "Britain Back To Work".
Much like when I sign on at the social on a fortnight (they were actually more helpful than I thought!).

So there you have it, you might have to face the same thing if you're planning on making a claim on any PPI to cover your mortgage should you be made redundant.
 
frank said:
I had critical insurance in with my life insurance from well known Scottish assurance company. When I had my heart attack (minor one) it caused a little damage to the heart muscle as all heart attacks do (I was lucky) Made a successful claim on my critical insurance and it was enough to pay off my mortgage...And get a new camera :) The company couldn't have been more helpful in the claim process, and certainly did not try to wiggle out of paying in any way.
Providing your truthful with your claim they will consult with the quacks and you should have nothing to fear. My policy covered quite a number of things, MI 2 stents inserted into your ticker at the same time qualified for a claim.
Click to expand...

We're still awaiting to hear the results of the MRI scan the JR did but think after reading this, I'll be checking the policy small print. Every little helps as they say and with only 11 months to run on the mortgage, gettting it paid off or at least a contribution towards it would be wonderful.

They've sent him back to work on light duties but until we know the full test results, we're both anxious as to what full extent of damage caused during the attack.

Di
 
Di Stone said:
We're still awaiting to hear the results of the MRI scan the JR did but think after reading this, I'll be checking the policy small print. Every little helps as they say and with only 11 months to run on the mortgage, gettting it paid off or at least a contribution towards it would be wonderful.

They've sent him back to work on light duties but until we know the full test results, we're both anxious as to what full extent of damage caused during the attack.

Di
Click to expand...

Consultant told me regardless of how minor or severe the the heart attack was, muscle damage will occurr, my MI was a mild one but as it was a little muscle damage it still qualified for a payment on CI cover, at least on my policy it did. Obviously insurance company will be contacting the consultant to confirm his diagnosis and will take a few weeks, all I had to do was fill out the claim form, they took care of the rest. Good Luck

Look on the bright side, if your mortgage is nearly finished then you will probably end up with a tidy sum after paying it off.
 
Had confirmation today that the insurance company are going to pay out in full our claim for the critical illness coverage. The MuchBeloved continues to do extremely well so here’s hoping his attack was just a warning which as been well heeded.

Now to stash it in a very safe account ready for April when the mortgage will be paid off totally – happy days :banana: :woot: :woot: :banana:

Di
 
Well, the decision was made for me. The insurers denied me critical illness cover.
They will cover my wife for life and CI, but will only cover me for life. Don't know why, just the word through the mortgage advisor (wont get the letter till we give the go ahead / start date for the insurance......which will be when we complete)
 
weird. its the stress of being a mod...
 
It's strange how fickle the companies are when some will and others won't cover you regardless of your health situation when you first go to sign up. We started our policies whilst still in the Army as we didn't need a mortgage, and then when we did, took the mortgage out to fit with the remaining years of the Endowments.

Good luck in you search anyway Marcel

Di
 
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