Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By garrywall
#6907 Is mortgage payment protection really necessary? (Thinking it could be for piece of mind, but not sure). I pay £46 pound a month with legal+ general arranged through my mortgage lenders Northern Rock. I can't remember if it was a stipulation of the mortgage that I took it out. It's just that I'm in a secure job and these policies tend to have a way of getting round paying you for accident, sickness etc. i'e the small print.
So I'm just wondering if my money would be better off somewhere else.
Thanks in advance for any help
ByVanessa
#6913 It depends what type you have and what cover you have through it - they are all different. Is this MIG ( which probably is mandatory on high LTV loans ) or accident, redundancy etc ?

I would suggest that perhaps no job is secure and you have no idea what your health will be like in the future so for peace of mind ( for your family, if you have one at least ) it's possibly £ 46 well spent.

Make sure you know what you are covered for and that the policy is appropriate for your needs - and change it if it isnt !
By garrywall
#6935 It's an accident,sickness,unemployment scheme. I have a seperate life insurance policy with them which pays off the mortgage when I die - £16 a month.
ByVanessa
#6960 Best bet would be to speak to a broker and see if you can find a better policy that covers everything for a lower price -
By johnny 72
#7009 im in agreement with vanessa, if the policy you opted for was sekected for you by your mortgage broker or the mortgage company directly, you may well be able to find a comparable, or even better policy for a cheaper payment.

be wary of critical heath insurance policies, there have been many reports in financial articles about how many are very expensive and how many have very very strict criteria that must be met before payout is received.

everyone has different needs obviously but the opinion of many advisers is that they are often not worth the expense as only a low percentage of policy holders ever receive a payout
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By JaneClack
#7014 You've hit the nail on the head Johnny!