Mortgage Protection, IE Life Insurance.

[budwieser]

Any Life Insurance experts here!?
Got a few questions about some Mortgage protection we were sold by Lloyds TSB.
I think we were taken for a pair of *****.!!!!!!!!!!!!

[Wicked_and_Crazy]

Mortgage protection and life assurance are different products.

Generally life assurance will pay out on death, maybe on critical illness on certain life assurances.

Mortgage protection, generally provides you with an income should you be unable to work. There's normally a waiting period before you start receiving payments

[etccarmageddon]

Originally Posted by budwieser

Any Life Insurance experts here!?
Got a few questions about some Mortgage protection we were sold by Lloyds TSB.
I think we were taken for a pair of *****.!!!!!!!!!!!!

fire away.

and if you're looking for a better value product go to money supermarket. for £42 a month if I remember rightly I'm covered for a mortgage of £800 for TWO years unlike your lloyds policy which is no doubt 12 month but a similar price.

[budwieser]

Originally Posted by etccarmageddon

fire away.

and if you're looking for a better value product go to money supermarket. for £42 a month if I remember rightly I'm covered for a mortgage of £800 for TWO years unlike your lloyds policy which is no doubt 12 month but a similar price.

We put ourselves in the hands of LloydsTSB to sort everything out for us, and, ............................for the last 18 month`s we have been paying, on a £703 per month Mortgage, wait for it................................................ .................................................. .....................
£284.00 PER MONTH with Scottish Widows for Life Insurance on our Mortgage.
I`m being penalized because i had Cancer 18 years ago and have been clear for 17 of those years!

[etccarmageddon]

ahh I see I'm paying around £10 a month for £80k life insurance which is a term insurance product ie. for the next 18 years roughly. I'd say at that price life insurance is pointless - you might as well not have it and take your chances. go to moneysupermarket and get some quotes but note that you will have to declare the cancer details which may cause them to bump up the policy but I doubt it as I believe once you are clear for 5 years doctors consider it unlikely to come back?

Direct line have some good offers on at the moment.

[etccarmageddon]

are you sure this £284 a month policy is JUST life insurance and isn't also endowment or unit linked. what is the policy called?

why has it taken 18months for you to discover this value? when you sign up for any insurance and are offered advice or no advice they're supposed to bombard you with clear quotes explaining eveything so you are 100% sure of what you are paying and what you are getting.

---------- Post added at 20:12 ---------- Previous post was at 20:12 ----------

some 'insurance' policies include 'units' or 'profits' which mean when the policy matures you get a payment but the downside is subscriptions are bigger.

[DaggaDagga]

Personally, I have as little insurance as possible. I have no life insurance or unemployment protection or whatever. My car insurance has a £1000 excess (which saves me £150 a year). I don't have legal expenses cover, hire car cover or any other optional extras. I have home buildings and contents cover, no accidental damage etc.

With all the money saved, I should leave plenty savings for the other half to sort things out when I get hit by a bus. I'm currently buying a second house to rent out, partly out of the savings I get from not buying all this nonsense.

I worked in insurance for 5 years, so know why it's a waste of money. Most of it is just preying on peoples' fears. There is very very little chance that you'll die or get sacked before the mortgage is paid, and if you did then they'd find a way of not paying out. The only people who benefit from your premium money are their shareholders and staff.

[handyman]

Slightly related to this thread.

Car GAP insurance cost's a maximum of £90 yet can be sold up to £1500.
Paint guard products cost £20-25 yet are sold for upto £500.
Life insurance on car policies is not worth it as your more than likely covered by a seperate life insurance.

[Chrysalis]

dont know about little chance of been sacked? how many people are confident they be doing the same job for next 30 years and those especially working for small companies.

[etccarmageddon]

NTL staff are getting made redundant by the shed load aren't they?

[DaggaDagga]

...but you'll get another job after a time. During your unemployment, your lost earnings paid by the insurance company would be a fraction of what you'd pay in premiums.

That is, if they actually paid out.

Insurance companies make healthy profits, even after paying all their costs. The amount they pay out must therefore be much less than the amount that's paid in. On average, everyone always claims less than they pay in. So, on average, you will be better off without insurance.

You just need a safety buffer of savings, which isn't a problem if you're not handing over half your money to an insurance company. If you're not happy with an element of risk then you'll never be well off.

[etccarmageddon]

my mortgage protection is £800 a month and would pay out for 2 years - therefore is worth £19k.

my monthly payments amount to £528 per year. therefore I would need to put away month for approx 35 years in order to build up that safety buffer.

[budwieser]

Originally Posted by etccarmageddon

my mortgage protection is £800 a month and would pay out for 2 years - therefore is worth £19k.

my monthly payments amount to £528 per year. therefore I would need to put away month for approx 35 years in order to build up that safety buffer.

No, I mean i`m paying £284.00 per Month for life insurance against my Mortgage which is a repayment Mortgage as we took LloydsTSB`S advice and did what they suggested.!

[etccarmageddon]

cancel the policy as I believe it isn't compuloray these days also write a formal complaint. for £280 a month you are better putting it into a bank a/c - why has it taken you 18 months to spot this - did they do it on the sly if so you might be able to get a refund of premiums.