Payment Protection Insurance v Mortgage Payment Protection Insurance

[SaltnVinegar]

Hi All

Looking for peoples thoughts in this one. Obviously the mis-selling of PPI is still fresh in everyones minds so getting a policy that will actually provide cover and is fit for purpose is crucial.

However I would like to know what is the difference between Payment Protection Insurance and Mortgage Protection Insurance.

As I see it a salary/payment PI would pay a sum of £xxxx/month which I can spend as I see fit? Whereas a mortgage payment protection insurance would go straight to the mortgage company?

Anyone got any of these policies? Are they any good? Is there any point? e.g. if I was injured to the point where I couldn't work as far as I can see most policies only payout for 12 months, after which I would probably not be able to afford to keep up the mortgage anyway?

As said, thoughts please.

Best
SnV

[di30]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

Hi there

Sorry for the long delay in responding, missed this sorry.

With my Mortgage Insurance, mine is a stand alone, and its not paid directly to the lender, but the business pay this straight into my bank account every month. I have back to day one cover.
Then the money is into the account ready for the mortgage payment to be debited.
It may not suit everyone though, and they are Cardiff Pinnacle/Helpupay.

[pompeyfaith]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

I would be more inclined to go for an income protection policy rather than a PPI or MPPI as an income protection policy would cover all indebtness you have and can be tailored to you monthly income.

I would also get it from a separate insurer and not one connected to any of your debts as you would be paying over the nose.

Regards

[garlok]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

I have to be honest and say I don't think any of them are any good. I had paid in for years into a Permanent Health Insurance policy to cover me because I worked essentially for myself albeit as a limited company. That was to what I was assured was a blue chip company namely Friends Provident. When the time came they were an absolute pain, real crooks and cheats, I felt it was a complete fraud. They even offered me all my premiums back, no interest of course, if I would go away. We manged after a major major battle to get just over 12 months payments and then they stopped it on the basis of a consultants report which they should never have had and in any case it said the same as it always had.

Don't trust any of them its all a complete confidence trick!!! The same happened with my pension fund. All the years that had been running they had been taking 3% of the yearly profits to pay for "waiver of premium" in the event of longterm illness. I only ever got three months payouts after 54 weeks of waiting. The satisfaction in that was that I got one their arrogant rude and incompetent solicitors struck off, Scots tart probably touting for business soliciting on a Glasgow street corner now.

I wished I knew then what I know now I would be a richer man by more than a half.

Repeat----- ITS ALL A CON!

regards
Garlok

[SaltnVinegar]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

Hi All

Thanks for your feedback, definately interesting reading, especially yours Garlok.

The cost of taking out one of these policies is a huge monthly sum (certainly in comparison to many other bills) so I have to question the value, especially as it seems that many of them are just not fit for purpose.

I have a life insurance policy with my employer, so I'm not worried about the 'in event of my death' scenario as I know my family would be looked after.

As I'm getting 'older' I am starting to think about things like long term health or illness issues. The best I can see these policies providing is 12 months grace, after which payments stop anyway.

Unless I've missed something?

Best

SnV

[mgfboy]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

I have to be honest and say I don't think any of them are any good. I had paid in for years into a Permanent Health Insurance policy to cover me because I worked essentially for myself albeit as a limited company. That was to what I was assured was a blue chip company namely Friends Provident. When the time came they were an absolute pain, real crooks and cheats, I felt it was a complete fraud. They even offered me all my premiums back, no interest of course, if I would go away. We manged after a major major battle to get just over 12 months payments and then they stopped it on the basis of a consultants report which they should never have had and in any case it said the same as it always had.

Don't trust any of them its all a complete confidence trick!!! The same happened with my pension fund. All the years that had been running they had been taking 3% of the yearly profits to pay for "waiver of premium" in the event of longterm illness. I only ever got three months payouts after 54 weeks of waiting. The satisfaction in that was that I got one their arrogant rude and incompetent solicitors struck off, Scots tart probably touting for business soliciting on a Glasgow street corner now.

I wished I knew then what I know now I would be a richer man by more than a half.

Repeat----- ITS ALL A CON!

regards
Garlok

I think thats a tad harsh, there are plenty of people out their that have a very good deal out of PHI, it horses for course in the end and perhaps you didn't understand what you where sold or missold!!!

The question in this case is why they didn't pay out, in my experiance it normally only happens in one of two cases ,
1. Non disclosure on a medical condition ( this is often not delibarate )
2. Not earning the income that was disclosed on the app

I've always found Friend Prov fine to deal with, but each has their own story.

I just get a bit pissed off when people start slagging of things just becuase they dont like/ understand it. I know it's trendy to slag off any financial company but some people can only survive because they where advised by a good person to take out policies.

I'm in the industry and I know we are not all crooks and I like to think in over 20 years I've never harmed anyone and hopefully done alot of people some good.

[garlok]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

Sorry mfgboy, but not harsh just blunt reality. Ita a con all of it and I know many people in senior professional positions in life who ONLY insure what the law requires them to do.

I understand more about pensions than most so called financial advisors and remeber companies ONLY exist for one thing--- screwing you and I to make a profit for their shareholders.

Friends Porivident were supposedly a blue chip look after their client company I was sold. It was a con a complete con and stand by what I said.

regards
Garlok

[malamute]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

Any one know one of those insurance polices that pays out upon diagnosis of terminal illness?

Thinking of one for piece of mind - to run alongside death in service (mine is capped).

[Never-In-Doubt]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

I think thats a tad harsh, there are plenty of people out their that have a very good deal out of PHI, it horses for course in the end and perhaps you didn't understand what you where sold or missold!!!

I'm in the industry and I know we are not all crooks and I like to think in over 20 years I've never harmed anyone and hopefully done alot of people some good.

Sorry mfgboy, but not harsh just blunt reality. Ita a con all of it and I know many people in senior professional positions in life who ONLY insure what the law requires them to do.

Friends Porivident were supposedly a blue chip look after their client company I was sold. It was a con a complete con and stand by what I said.

I can see both sides to this, in a way - it is specific to the individual, however with most insurances it is a con, waste of money / whatever you want to call it.

That said, it is also personal and preferential to your specific needs thus whilst I can see both points of view here, I must agree with Garlok in that 99.9% of people were missold these 'worthless' policies and until maybe they start to do an ATOS test pre-insurance then they'll always be a con.

I went to a top advisor once, highly recommended, you know what he suggested? Get a life plan - I did so and then noticed he'd omitted a key part of my form, I declared a family member had died of a terminal illness which you should do, being it was the dreaded 'C' - yet he missed it off saying "it would load the policy" and I said, yea but it'll make it fucking legal so put it right before I report you!

Point is, in my opinion, it is not ONLY the idiots that are out to make money that's at fault, but also the insurers themselves....

With that in mind, I do not doubt there are some good IFA's out there, its a shame though - as with the bank industry, everyone does get tarred with the same brush.....

Just my tuppence worth

[Never-In-Doubt]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

Any one know one of those insurance polices that pays out upon diagnosis of terminal illness?

Thinking of one for piece of mind - to run alongside death in service (mine is capped).

Have a chat with mgfboy, he may be best suited being in the industry.....

[mgfboy]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

I went to a top advisor once, highly recommended, you know what he suggested? Get a life plan - I did so and then noticed he'd omitted a key part of my form, I declared a family member had died of a terminal illness which you should do, being it was the dreaded 'C' - yet he missed it off saying "it would load the policy" and I said, yea but it'll make it fucking legal so put it right before I report you!

To right you should have reported the dick head , he would be no loss to the industry, Niddy your not a stupid bloke and you know that for insurance to work most people will never claim, but for the few that do it's the best thing that ever happened to them, it's all about pooled risk. I've know quite a few bar room pundits , they say it's all a rip off , but I never noticed them putting their hand in their pocket when their mate has a heart attack or drops dead to pay off his mortgage or provide of their family.

We live in a world these days where the state wouldn't help and people can't afford to, so apart from us horrible sharky IFA's /advisers who else is there to put a safety net under people, because as we know shit does happen!!!!

Sorry if I seem a tad upset, I've spent the last 20plus years trying to do whats right for people and don't get me wrong I used to earn good money doing it. I also agree there are alot of sharky barstards out their but please dont tar us all with the same brush.

[mgfboy]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

Any one know one of those insurance polices that pays out upon diagnosis of terminal illness?

Thinking of one for piece of mind - to run alongside death in service (mine is capped).

Most life policies pay out on diagnosis of a terminal illness ( normally 18ish months to live), but dont get that confused with critical illness policies that pay out on cancer, heart attack, MS etc. You dont have to be terminal for them to pay out.

[Never-In-Doubt]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

I also agree there are alot of sharky barstards out their but please dont tar us all with the same brush.

Mate you know for a fact, 100% I am not tarring you all with the same brush - I am saying people will, people do and that is life - however I know you and that changes things on here, I am happy that if you can help people then good - go for it and if you do them right then they'll vouch for you themselves.....

That is why I suggested the user above speak with you..... I would not have suggested they do, if you were a scam like a few others are/can be...

I'd buy from you mate, if there was something I needed. No reason to doubt you or your experience/knowledge..... Please though, put some of it to use and help us answer queries here or offer to start threads with some basic help guides - we'd appreciate it

[SaltnVinegar]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

The question in this case is why they didn't pay out, in my experiance it normally only happens in one of two cases ,
1. Non disclosure on a medical condition ( this is often not delibarate )
2. Not earning the income that was disclosed on the app

Thanks MGFboy its good to get different view points on this.

As I mentioned the quotations I am being given are significant monthly sums and I have to balance up that risk equation.

Your quote above though does highlight why I'm asking the question in the first place. If you do not disclose a medical condition, even if not deliberately, then a pay out doesn't occur.

It would seem that you are also now expected to know about 'family' medical conditions.

Best will in the world, I am never going to know about the medical conditions that my father/mother/grandparents/uncles/aunties may have had and I'm pretty sure that they are not going to tell me should I ask!

It can't be denied that these insurance companies employ people to look through claims with a fine tooth comb for reasons to reject them. If an insurance company were able to get hold of my relatives medical records then its a certainty they will know more than me!

I guess you could argue this but this is my point................

By the time a claim has been processed (which it would seem could take many months if a dispute arises) I potentially could be in arrears with the mortgage and have the house repossessed.

Hence why I'm interested in all experiences, good or bad.

Best

SnV

[Never-In-Doubt]

Re: Payment Protection Insurance v Mortgage Payment Protection Insurance

My point exactly mate - thing is I knew my immediate family member died with "C" therefore yes, it is VERY important to any insurance for me as it is usually hereditary and imagine if I never disclosed it and then died, Mrs Niddy would kick my arse in a grave! Burn me? Nah, she'd let the dog eat me if I did that....

However, I knew about this - you'll find on any insurance quotation you'll get asked about any KNOWN conditions for family members, in some cases people are adopted etc or lose touch with their birth parents so in essence, that could be argued in court - for instance if you never spoke to your parents for 50 years then found out they were both dead, but your insurance was 30 years in - you'd be able to prove you never knew anything, so they should pay out.

Not saying they will, but they should.....