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Mortgage Payment Protection

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  • 30-06-2009 8:28pm
    #1
    gowayouttadat
    Registered Users Posts: 506 ✭✭✭


    I need some advise in relation to this product. Myself and my partner currently do not have it. We have been told that he's going to be laid off next year. I want to look into covering my portion of the mortgage as if anything happens my job and both of us end up out of work we will be in trouble.

    Can someone offer advice on the best places to get the cover? Say our mortgage is 900 euro a month. Is there any problem with me getting mortgage payment protection on my half? I know his portion of it won't be covered as we're already aware that he's going to get laid off but I presume my portion should be ok to cover?


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    #2
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Your mortgage provider will probably be able to organise this cover for you. Once you're not aware of any pending redundancy for yourself, then there shouldn't be a problem taking out the cover for your half of the mortgage.


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    #3
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    I wouldn't be a great fan of the product. There are about 4 products on the market, most with recent price increases. If there is any hint of impending job loss, payout will be difficult. Some useful info here:
    http://www.mortgagepaymentprotection.ie/


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    #4
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    aren't there waiting periods on these policies, i.e. you can't claim until X months into the policy

    Payment protection can be a very useful product if it becomes needed, however be warned that most that are sold through intermediaries have huge commission levels (I have seen levels as high as 70% in Ireland and 80% in the UK) which the customer pays for

    The risk premium element (the part of the premium that is used to pay claims rather than commission, expenses etc) of the premium paid can be very low in comparison to other policies (household, motor etc)


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    #5
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    Colonel Sanders wrote: »
    aren't there waiting periods on these policies, i.e. you can't claim until X months into the policy


    yep


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    #6
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    AFAIK, it's usually around 90 days, but varies from policy to policy. We got free mortgage payment protection for a year when we first took out our mortgage, and it was 90 days if the claim was for redundancy due to being let go, but if you were unable to work due to illness or injury, the policy had to be in force for 120 days before the illness/injury, so it would seem that some of them also vary on the reason you're out of work too.


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