# Redundancy and Mortgage Payment Protection



## servicec (31 Oct 2008)

Long time lurker first time poster!!!

Bit worried my gf is going to lose her job, nothing firm as yet but never know.

Is payment protection insurance any good? How long do I have to sign up for. Didn't get it with my original mortgage due to ye olde Celtic Tiger!!!

How much should one be paying etc and will I have to go through my bank?


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## NorfBank (31 Oct 2008)

*Re: Redundancy: Payment protection insurance*

try here

http://www.askaboutmoney.com/showthread.php?t=92536&highlight=cardif


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## nagrom (20 Nov 2008)

*Re: Redundancy: Payment protection insurance*

bad news buddy.protection won,t kick in until minimum 12 months of payments are given by you.even then u hav to sign on for 2 months and register for fas course.u must be involuntary made redundant not voluntary,thats important.and to top it all off if they think u knew that there was the sligest inclination that u could be made redundant before you sign up with protection company believe me they wont pay.i speak from expierence.all a con


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## covered (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*



nagrom said:


> bad news buddy.protection won,t kick in until minimum 12 months of payments are given by you.even then u hav to sign on for 2 months and register for fas course.u must be involuntary made redundant not voluntary,thats important.and to top it all off if they think u knew that there was the sligest inclination that u could be made redundant before you sign up with protection company believe me they wont pay.i speak from expierence.all a con


Possibly one of the most unhelpful posts I have read in a while. OP, most income protection/payment protection policies on offer at the moment require 3 mths to elapse from when you take out the policy before a claim will be successful (provided all payments are up to date). Both broker organisations have a preferred supplier PIBA have Cardif Pinnacle and IBA have Assurant. Just go to a broker close to you and they can sort you out. These companies will pay out in cases of involuntary unemployment, dont heed the last posters cynical opinion (there is a lot more to his/her story I suspect)


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## Sunny (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*



covered said:


> These companies will pay out in cases of involuntary unemployment, dont heed the last posters cynical opinion (there is a lot more to his/her story I suspect)


 
The poster said they don't pay out on voluntary redundancy. Be very careful with these policies and make sure you read the terms and conditions carefully as the payout on claims under these policies is quiet low.


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## Stapeler (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*

Just wondering if individual has a policy(lets say mortgage protection) and looses job would their partner/spouse who is still in employment be expected to make the payments? would payment protection be of use?


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## NorfBank (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*



Stapeler said:


> would their partner/spouse who is still in employment be expected to make the payments



Do you mean the payments on the policy or the mortgage?


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## Stapeler (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*

Norfbank, I meant mortgage as opposed to policy.
Keano1, thanks for the clarification.

I seen a case a few years back where person has a motorloan (with protection),  made redundant and two months later gets married. Protection policy covers first two months and newly acquired husband acquires a motorloan  policy small print insisted that spouse takes over loan if in employment.


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## NorfBank (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*

Regardless of whether one of them is employed, the mortgage will still have to be paid.
The mortgage repayment protection policy will give the couple an income for up to 12 months to help pay the mortgage.


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## Sober Lark (24 Nov 2008)

*Re: Redundancy: Payment protection insurance*

Mortgage Repayment Protection is set to become a grand money spinner for many intermediaries. It even confuses people with mortgage protection but that’s just industry jargon doing its job for you and don’t you love it. 

It is one of those products where you really have to understand the implications conveyed in the small print, for it’s at a claim stage many who have been paying premiums could be in for a nasty shock and there are no refunds. 

Each claim isn’t clear cut but one thing is for sure, if you make it past the 60 / 120 day rule then you will not be able to claim a single cent if at the time you took out the policy you had *‘reasonable cause to believe your job may be under threat’ *_and t_ry arguing that one successfully. In the current economic climate there must be very few who feel their jobs are secure and those who don’t are the very ones who are seeking policies.

Some short sighted intermediaries see these as flavour of the month policies and so make hay while the sun shines and prosper on unfortunate straw clutchers. Now is the time for selling, claims come later and after that the door can be bolted but too late the insurance industry is tarred and once again no one saw it coming?

I’m not saying you can’t claim – yes it’s probably easier to claim on the accident, sickness and hospitalisation part of the policy but that’s not what people are after. They want the comfort of redundancy cover.  

One really needs a good independent broker to drill into the detail and who understands the claims procedure for without this guidance is to risk making a costly purchasing error.


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## daddy1collon (27 Nov 2008)

*Re: Redundancy: Payment protection insurance*

Sober Lark Quote
"It is one of those products where you really have to understand the implications conveyed in the small print, for it’s at a claim stage many who have been paying premiums could be in for a nasty shock and there are no refunds"


is this not the case for all insurance policies including Life and Serious illness? I see the Ombudsman has recently had to force one of the life companies to pay out a valid claim! http://www.rte.ie/business/2008/1125/ombudsman.html


If you read the T & C's and are happy with the policy then is the cover not suitable? In the event of a valid claim then you will have the Ombudsman on your side.


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## Sober Lark (27 Nov 2008)

*Re: Redundancy: Payment protection insurance*

“If you read the T & C's and are happy with the policy then is the cover not suitable? In the event of a valid claim then you will have the Ombudsman on your side.”

Should that not be ’If you read and _understand_ the T&Cs’.  Most people will judge the value of the cover by the way in which a claim is handled so a claims rejection may well end up on the Ombudsman’s table. The Ombudsman may need to get a bigger table.


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## Jister (28 Jan 2009)

*Re: Redundancy: Payment protection insurance*

Is the insurance payout taxed? IE if you insure for €1000 will you taxed at 20% (or whatever)

Also is there anywhere you can get an online quote?


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## consol (2 Feb 2009)

*Re: Redundancy: Payment protection insurance*

hello...

i took out mortgage protection payment cover when I got my mortgage 4 years ago but last year started to rent out the house as I moved back home. I still pay the premium. If I am made redundant would the bank/insurance company have a way out of paying it because I'm now renting it out?

Thanks


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## exbroker (2 Feb 2009)

*Re: Redundancy: Payment protection insurance*

Hi..Allianz pay out after 3 months contributions if you took the policy with the mortgage. If you took it out after your mortgage was issued, then there is a 6 month wait. A lot of people take out these policies when their jobs start to look unstable, hence the insurers are more cautious, which is fair enough. Personally I think it's money well spent if you end up out of work for a few months. Just ask the insurer/broker all the questions you have before you take it out and get them to highlight the terms and conditions you have any concerns over before you take it out. The premuims are starting to increase due to a higher number of claims going through.


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## construct_06 (4 Feb 2009)

*Re: Redundancy: Payment protection insurance*

for the redundancy payment protection or salary protection, do most of these only pay out for say 12 months?

would you be better off putting some money away for a a rainy day event like redundancy and have say a years wages if possible?

the mortgage payment protection is only if one spouse dies then the mortgage is paid off, right?


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## Brendan Burgess (12 Feb 2009)

*Re: Redundancy: Payment protection insurance*

Financial Regulator Guide to Mortgage Repayment Protection 

Brendan


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## Clerragh (25 Feb 2009)

Well all,
Myself and my fiancee have built a house. We got our mortgage of Ulster Bank in September 2007 and went through them in December 2008 to get Cardiff Pinnacle insurance which covers against redundancy. We did not get this at the start of drawing down the mortgage(like everyone thought we'd be sound). We still have a final stage payment to draw down on the mortgage yet which we hope to apply for in next few weeks as few bits to finish off before engineer will sign off. 
I'm not too sure about my job in the construction industry at the minute and we were looking through policy last night which states 90 day period for new lenders and 120 day period for existing lenders. I'm just wondering would anyone here know which category we'd fall under. 90 / 120 days. I don't want to ring Ulster bank just yet and hope you can help me.
Thanking you


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## NorfBank (25 Feb 2009)

120. 
If you had taken out the policy on the day you drewdown the mortgage then it would be a 90 day period.


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## RD1 (7 Mar 2009)

Apologies if this has already been answered but here goes. As I was not employed long enough to get a mortgage my husband bought our house and the mortgage etc is all in his name (everything is - we had planned to change this but didn't get around to it). Now nearly two years later my husband has been made redudant, I am still working. He took out payment protection and is going to claim on this. Is he entitled to do this even though I am still earning? Many thanks


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## PaddyW (7 Mar 2009)

I don't think he will be, but I'm open to correction on that.


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