First Active Mortgage income protection

[pennypincher]

I'm currently changing to a current account mortgage and want to take out income protection in case I loose my job etc.The broker has told me he can't give me any details on the amount I'll be paying each month and what the activation period is...until I draw down the cheque..do I wait 3,6, or 9 months before I can legally be allowed to claim?Does anyone know...

 

[demoivre]

I'm currently changing to a current account mortgage and want to take out income protection in case I loose my job etc.The broker has told me he can't give me any details on the amount I'll be paying each month and what the activation period is...until I draw down the cheque..do I wait 3,6, or 9 months before I can legally be allowed to claim?Does anyone know...

Seems very odd to me - you don't have to take out the policy through the broker. Shop around - get an online quote from [broken link removed]

to give you an idea of what it will cost . You can choose a deferred period of 13, 26 or 52 weeks. The longer the deferred period, the lower the insurance premium. I would think long and hard about giving business to the broker under the circumstances you describe above.

 

[RainyDay]

Are you sure you really need this protection? The payouts tend to be restricted to very specific circumstances. If you have any knowledge that your job is at risk before taking out the policy, the cover may well be invalidated.

 

[pennypincher]

Sorry maybe I wasn't clear in my first message.This is a protection with the lender you can only take out at the start of your mortgage,it's really redundancy protection in case you get made redundant.I checked Prima Finance but did not see this option.Some friends only had to wait 3 months for it to activate others 6months....I still don't understand why I can't be told before drawing down the cheque...

 

[ClubMan]

Yes - but as pointed out above you should check if the cover is really worth it. For example what restrictions are there on this sort of policy paying out. Some such policies put restrictions on the sort of sitation in which they will pay out (e.g. if you are made redundant and can't get any job - e.g. including McDonalds or the like!) and for how long (e.g. some such policies limit payments to 12 months in total).