Mortgage repayment protection insurance

B1977

where is the best value to be got

mick087

B1977 wrote: »

where is the best value to be got

My Mortgage is around 700 and i pay
40 euro per month for Payment protection
23 euro per month for Life Assurance

Pay this same with same bank as my mortgage EBS
Be interesting to see what others pay as i think i might look else were.

Drumpot

B1977 wrote: »

where is the best value to be got

It depends on what you mean by Value. . Cheap isnt always the best! The most important question on these plans is how confident are you that the company supplying the cover will payout if you need to make a claim ?

I used to have an agency with a company that provided Mortgage Income replacement but I had an issue with the vagueness of the Terms and conditions and as such I never advised/sold any of the product.

The biggest problem I have with this cover is that there is no underwriting at application stage. By that I mean that most of the companies that supply this cover do not ask many questions at application to get an idea of what your chances of losing your job are. In many cases (not all), when people have gone to make claims, they have had to fight hard to get their claim.

Some of the T&C's usually say that if you had any reason, at application stage, to believe that you may lose your job within a certain timeframe, they may not pay out the claim. Who can say for sure that their job is completely secure ?

Another thing to remember with these kind of policies is that there is usually a set amount of payments that they will pay out. For example most of them may only pay up to 24 payments throughout the term of the policy.

There are also usually exclusions (eg first 6 months)

As I said, my biggest issue was the T&C's, but each to their own.


We should all try to save at least 6 months of bills etc to give us time to deal with any potential drop in income (or loss of Job). What people should also factor in is that there is mortgage interest supplement for people who satisfy the means testing of - http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/mortgage_interest_supplement.html

Saving €150 a month for 5 years even with a 3% return would yield about €9,000. That would cover just under 13 months of Mick087's mortgage (and you can bet the policy he has will pay no more then 24 payments throughout the term). This is important if you think your job might be under threat and you are considering taking out this cover , particularly if there is no initial underwriting!

If you have any reason to believe that you will be let go in the next year, you can be pretty confident that no company will pay out a claim that people had any sort of prior knowledge of redundancy, so my advice would be to save as much as you can now.

Hey mick087, I hope you got more then a quote from your mortgage provider for that Life cover!

xonne

Hi Drumpot, in your T&C, is it written that no claim will be accepted with the prior knowledge of redundancy?

I am thinking of buying one from EBS end of this year as I know I might be let go in the middle of next year. So your advice is don't bother to get it?

Has anyone successfully made a claim after one has made redundancy?

Toots

As far as I know when you take out the policy part of the terms and conditions are that you are not aware of any upcoming redundancy. I wanted to take out some for my husband when he heard his company was in trouble but we couldn't because when we read the application it specifically asked were we aware of any pending redundancies.

I've seen people make successful claims (several of the customers I've dealt with have claimed) but I've also seen a claim turned down because the customer didn't declare that they knew they'd be getting made redundant in a few months (it was just outside of the 90 day exclusion period), but there was a form that he had to get his former employer to fill in and one of the questions on it was 'What date was this employee first informed of the redundancy' and when they gave the date, the claim was rejected because it was before the policy was taken out.

I'm not sure if this is the case with all policies, but definitely talk to an advisor and go through the Ts&Cs with a fine tooth comb before you sign up to anything.

xonne

I am working on a permanent basis not contract. The project that I work on will be completed in the middle of next year. Company does not seem to have new project. There is no inform of redundancy from the employer. It is only based on my own guess that company might let me go as there are no new project to work on.

So is that considered that I am aware of any upcoming redundancy?

Lady Chatterton

xonne wrote: »

I am working on a permanent basis not contract. The project that I work on will be completed in the middle of next year. Company does not seem to have new project. There is no inform of redundancy from the employer. It is only based on my own guess that company might let me go as there are no new project to work on.

So is that considered that I am aware of any upcoming redundancy?

No. The question on most claim forms is, when was the employee first imformed of their impending unemployment/redundancy? It is the employer who enters the date.

Until you are notified by your employer (normally in writing) you are not expected to know that your job is at risk.

Lady Chatterton

I totally agree with an earlier contributor, it is very important that you compare the terms and conditions of policies when deciding which policy to select. The cheapest quote may not be best.

In most case redundancy claims are paid for 12 months, while accident and sickness claims (excluding critical illness) are paid for 24 months usually.

Terms and Conditions can vary alot from one insurance company to another

For example:

Some policies do not cover any psychiatric conditions (including stress or depression)
Some policies cover psychiatric conditions if diagnosed by a Consultant Psychiatrist, while other policies will accept a GP's diagnosis.

With regard to back conditions, some insurance companies will only pay out if there is radiological evidence to support the claim - i.e that the abnormality can be seen on an MRI scan etc)
Again, there are some policies that will accept you have a back condition if your GP has diagnosed it.

Beware too that in the case of unemployment claims you may have to be unemployed for a certain period of time 30 or 60 days before the insurance company will start paying.