Mortgage Payment Protection - HELP

licious · by **licious** » Wed May 02, 2022 11:16 am

We have an average size mortgage – term is 35 year and we are paying it for 2.5 years and have mortgage payment protection. It is working out expensive (over 80 euro /month) on top of mortgage. Money isn’t tight at the moment. I have just changed jobs and hubbie in a stable job. Because I have changed jobs, the insurance company said I need to state this in writing to them and should I be made redundant that they will not cover me in the first 6 months in new job. Am I mad to be paying into this policy? I am really close to cancelling. Should one of us be made redundant the insurance company would pay out half our mortgage for maximum 1 year. We have savings to cover us, should one of us be made redundant. I’m wondering why pay into this policy & should I just put the money into a savings account???? What do you all think? The only thing is once I cancel this policy I cannot get it back again ( You can only take it out when you are taking out your mortgage) It just seems like a lot of money to me…. Am I daft? x

Anne Cordelia Shirley · by **Anne Cordelia Shirley** » Wed May 02, 2022 11:25 am

I was sold one of these when I first took out my mortgage. I dropped it after two years because having gone through the details and conditions with a fine tooth comb, I realised it wouldn't pay out more often than it would. It was costing me about 60 quid a month which was better off in my savings! There's so many 'get out' clauses in them that I don't think they make any sense to have. I've read in the papers about people paying these policies for years and getting nothing when they are made redundant, obviously that's only anecdotal but I think they are a bit of a racket.

NittyGritty · by **NittyGritty** » Wed May 02, 2022 11:33 am

I recently cancelled mine too for pretty much the reasons ACS just outlined. The real sickener for me, is that I paid it, without really thinking about it, for over 11 years and never availed of said protection. It actually pains me to think about it now. The money I handed over to them every month over the course of those years would have paid for a damn good holiday or 5.

Jane Smith · by **Jane Smith** » Wed May 02, 2022 11:35 am

Licious, this sounds like the type of insurance being referred to all over the news lately (PPI). Eddie Hobbs has discussed it on his consumer show (it was on last night - you might catch it on RTE Player). Apparently a lot of policies were mis-sold. An investigation took place in the UK and many policy holders were refunded. AIB also announced this week that were going to begin issuing refunds (mainly Credit Card related policies). I think you should read up a bit more on it and check if any of the out clauses relate to your situation. You may also be entitled to a refund. One way or other I would think it's not worth the money. The insurance companies will look for any means possible not to pay out.

http://www.independent.ie/national-news ... 15868.html

http://www.eddiehobbs.com/_blog/eddiesblog

http://www.irishexaminer.com/ireland/ai ... 92007.html

yonex · by **yonex** » Wed May 02, 2022 12:16 pm

on the aib credit card thing my friend got 580 back on Monday from aib

a lot of the mortgage protections have so many Claus u have to fight to get anything we didn't bother wit it

missymoomooo · by **missymoomooo** » Wed May 02, 2022 12:17 pm

Have been thinking about cancelling mine for a while now, i took ours out when we first got our mortgage and because it was when things were going really bad and we were very tight for money having just moved in, dare i say i think things have calmed a little bit to how they were a hear and a half ago, we've savings behind us now and could manage for a couple of months if we had to...
I'm going to email them today to cancel it, about €80 a month back in my pocket.

Ellefun · by **Ellefun** » Wed May 02, 2022 12:26 pm

Hmmm, that's an idea. I could free up a few €s by cancelling mine too. I didn't take it out on my main mortgage but they automatically stuck it on to my top-up. I don't fit alot of the criteria and I bet it wouldn't pay out if I ever tried to claim. I don't think it's costing big bucks but every euro counts. Will get ont ot it asap.

RoseDawson · by **RoseDawson** » Wed May 02, 2022 2:23 pm

Ya, I have this too, and am thinking of cancelling it, just not sure if its worth the money. Hubby in college so dont want to be "wasting" any money that can be avoided.
I think ill give them a ring when i fish out the paper work at home and see what would actually be covered if I was to lose my job.

Would love to know how many wollies actually have payment protection on their mortgages??

Ellefun · by **Ellefun** » Wed May 02, 2022 2:29 pm

Even if it was an option/choice, I'd be reluctant to cancel our Mortgage Protection (life assurance policy that would pay off the bank loan in the event of death). DH also has life cover too. This payment protection though seems to have more snags than advantages. They seem designed in favour of the lending institution not having to pay out. Maybe they have been a lifesaver to some people but all I seem to hear are negative things about them.

RoseDawson · by **RoseDawson** » Wed May 02, 2022 2:36 pm

Oh ya would never cancel life insurance (dont think your allowed anyway) but this payment protection seems to be a bit of a joke, i'll look into it further anyway, would be nice to save that €50 a month.

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