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Mortgage Repayment Protection

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  • 18-03-2008 7:13pm
    #1
    DingDong
    Closed Accounts Posts: 1,438 ✭✭✭


    I got my first mortgage a couple of months ago. I only have the basic protection if I kick the bucket its paid off. Just wondering about repayment protection if I lose my job. Do you have to go with the bank or is there someone else I could go with. If so any recommendation would be a appreciated.
    Thanks


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    #2
    MortgageBroker
    Registered Users Posts: 60 ✭✭MortgageBroker


    repayment protection is fairly hard to claim against, personally i don't have it nor would i be pushing it an anybody other than if somebody asked for it.


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    #3
    bobk
    Registered Users Posts: 370 ✭✭bobk


    I don't have repayment protection either.

    Although I personally would recommend having a separate account of at least 2 months repayments should the worst case scenario ever occur.

    If you don't already have an account like this then you could start by saving the amount you would pay for the insurance into that seperate account and also top it up with the tax relief at source refunds you should be getting.


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    #4
    Lawdie
    Registered Users Posts: 863 ✭✭✭Lawdie


    MortgageBroker wrote: »
    repayment protection is fairly hard to claim against, personally i don't have it nor would i be pushing it.

    Can you back this up with examples?
    I've come across this statement before, but I worked in a company that seemed to "fairly" payout on claims. Saying that it wasn't cheap to get cover. But thats what your paying for!


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    #5
    DingDong
    Closed Accounts Posts: 1,438 ✭✭✭DingDong


    Thanks everyone.


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    #6
    seaner
    Registered Users Posts: 382 ✭✭seaner


    i have life assurance (which is same as mortgage protection), I'm covered if I or my partner dies, i.e. the entire mortgage is paid for. We also opted for serious illness cover, so if my partner or I become ill the mortgage is also paid off entirely.
    As for becoming unemployed, we just regularly save into a Credit Union account. Once we've at least 3 months mortgage money in there I'm happy enough.
    Also my sisters boyfriend recently lost his job and they were worried about having to pay their mortgage . However they are actually entitlied to a little help through social welfare. Not sure exactly what its called, but someone called out to their home, did a short interview, and now 2/3 of their mortgage is paid for. They will be up for review again in 2 months.
    But its nice to know isn't it?


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    #7
    XJR
    Users Awaiting Email Confirmation Posts: 294 ✭✭XJR


    I regard mortgage payment protection as I do the extra cover they ask you to pay for when you hire a car. You can pay €100 now or €1500 if you prang the car. But how likely is that to happen? I regard it as a way of the hire company generating extra revenue.

    Mortgage payment protection as mentioned by a previous poster is notoriously difficult to claim against so I wouldn't touch it.


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    #8
    DingDong
    Closed Accounts Posts: 1,438 ✭✭✭DingDong


    Well you have all talk me out of it. Think I'll go the route of saving a few quid in another account.


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    #9
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    Payment Protection Insurance is like anything. If you have to draw on the benefits it can help you out of a hole (in the event of unemployment etc). However it is very expensive relative to the actualy risk premium (i.e. what should be charged purely to cover the expected cost of claims). Quite often this is due to massive commission payments made to the distributor, which obviously the customer pays for.


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