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Income Protection Insurance


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Hi

I thought many people took out income protection insurance with their mortgages, to pay the mortgage if they lost their job. So what's the point of Brown's latest handout? And will they exclude people with this insurance from Brown's scheme? who would be left- irresponsible people who borrowed a fortune and didn't take out income protection insurance?

as with the bank bailouts, this is the wrong message to give out i.e. if you're irresponsible and not prudent then don't worry! The state will step in and save you anyway.

Edited by scarlets79
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I thought many people took out income protection insurance with their mortgages, to pay the mortgage if they lost their job.

Has anyone had experience of this ?

Here's a typical clause indicating you wouldn't get paid if you "had reason to believe that you might become unemployed".

Now, what if you work in a bank ? It is likely but not definite by any means... would they not pay, based on the fact you work in a bank and everyone knows what that means.... ?

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Has anyone had experience of this ?

Here's a typical clause indicating you wouldn't get paid if you "had reason to believe that you might become unemployed".

Now, what if you work in a bank ? It is likely but not definite by any means... would they not pay, based on the fact you work in a bank and everyone knows what that means.... ?

The evidence suggests that they'll find a reason not to pay out.. or simply string you along long enough to get reposessed, so they don't have to any more. My parents had something like this in the 1980s - managed to get a single month's payment out of them after 6 months foot dragging.

It's a bit like health insurance in the US - there's a huge incentive for insurance companies to drag their heels about payment with the hope that the patient will die (if it's an expensive and terminal condition).

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Hi

I thought many people took out income protection insurance with their mortgages, to pay the mortgage if they lost their job. So what's the point of Brown's latest handout? And will they exclude people with this insurance from Brown's scheme? who would be left- irresponsible people who borrowed a fortune and didn't take out income protection insurance?

as with the bank bailouts, this is the wrong message to give out i.e. if you're irresponsible and not prudent then don't worry! The state will step in and save you anyway.

Have never taken it out myself, but I think there is a pretty big market for it.

Datamonitor estimates around £218m of premiums for 2007 (http://www.datamonitor.com/industries/research/?pid=DMFS2252).

Change that - there WAS a pretty big market for it. Has the government decision just set in motion unintended consequent 38C, by effectively rendering this part of the financial services market redundant?

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It doesn't pay out for very long and there are a million reasons why it won't pay.

I suffered from a broken arm when my baby was 10 weeks old and it paid out for the 8 weeks whilst the cast was on my arm but once it was off, some administrator came to my house saw that the cast was off but I still couldn't move my arm out of the sling and decided all was well again and stopped the payments.

However at £60 per month for 12 months it was still good value, they paid at least £20k out in total.

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I have a Mortgage Protection Policy with NU. I took it out 2 years ago when I nearly got made redundant...but then took a pay cut to stay on. It is a faff to get them to pay out, you need a lot of Documentation...and you have to sign on! There is a 30 day period when you do not get paid, then it will pay out a maximum of 12 payments. Now, every month after being finaly made redundant I send off an AB1 11 to them from the Job Centre that covers the whole month. They then pay me (and the premium) within 5 working days. The only Issue is I sign on a week after the month end so am a bit behind claiming (8 days) but I still have possitive cash flow! Remember if you get a payment for notice period...they will not pay out untill after the period is finished (same with JSA) If being made redundant try and get the full payment made for 'loss of office' due to redundancy......as this gets round the notice period.

What I would say is get a Policy from a reputable company and realise that on top of the hassle of redundancy..you still have to do leg work to get your cash! BTW, also get contribution based JSA....

Cheers

N.

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On this subject, and a little anecdotal, my sister took out income protection with a personal loan and they added the entire 5 year premium to her loan, only quoting the monthly payment difference. She was put in touch by a friend with this outfit www.premiumreclaim.com who sued for the premium+interest+damages, she ended up with about £12k and took out proper monthly payment insurance.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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