recommended a Life Assurance for the length of the
Life assurance pays out when you die. You will never gain any benefit from life assurance - it is of interest only if you have dependants that you want to look after after your death.
Payment payment protection will pay out if you can't meet mortgage payments IF the conditions of the insurance policy are met (e.g., redundancy, critical illness). The conditions vary with the insurer and are likely to be stringent (i.e., it is usually difficult to make a claim) especially if your income is not secure (e.g., you are self-employed). Premiums tend to be very high.
My opinion:
1) Shop around for competitive cover if you need it. It is _very_ unlikely that the mortgage comes with a competitive insurance quote.
2) Life assurance is worthwhile if you have family to support, else forget about it.
3) Payment protection is a waste of time. Use spare cash to reduce debt, save into an ISA or make over-payments on the mortgage.
A very blinkered view. Say insurance costs 25 pm. How long would it take you to save the mortgage payments for a year at the rate of 25 per month if you didn't take out the insurance? Is the peace of mind worth anything?
It depends what you get for your 25. When I looked at it some years ago, with the restrictions on the length of the payment, and how long you had to wait until it started paying, it isnt worth getting. example, often didnt start until 3 months in, and stopped after 9 months. If you get a job after
6 months, then you are paying for only 3 months mortgage.
Let me expand ... the premiums may be low but so is the possibility of a payout for most people. Those in secure jobs will probably get some cover from their employer (e.g., redundancy benefits in many secure jobs are better than the statutory minimum). Those who most need the protection are self-employed, on short term contracts or freelance and hardly ever able to claim.
I did state it was my opinion. I'm quite happy to speculate that it may be useful for some people - I'm not sure who - but they should definitely shop around. There are other factors to consider too. I don't think payment protection is that useful if you aren't at risk of defaulting on payments (e.g., you've got savings or other assets that would cover you through any difficult period) or if it would be easy for you to find new employment.
Sorry to but into this thread could you tell me why you didn't reply to my question to you on my Mortgage compensation thread ?
Perhaps you didn't see it so I've cut and pasted it below.
It would be helpful if you could you tell me on what substantive basis you made your comments, or were you just trolling or posting without any knowledge of the issues?
Thanks.
Please re-read my figures. Taking into account the extra outgoings I am
*still* worse off. The RM would cost approx 10p/m more. They are *not* even offering me this amount of compensation.
I really don't think I can be any clearer than in an earlier post where I gave *all* the figures.
Did you bother to read it? If so please explain to me how I am "in the same position" now where I have to pay more than a RM *taking into account* the extra historical payments into a RM until the end of term?
Please do as I just don't get it!
: > I repeat my OP, has any one had *any* success on this front? : > : : That front would be the 'have your cake and eat it' front I take it? :
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