Mortgage Payment Protection & salary Protection

G

GreenFlag

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Hi

just wondering is there any type of product that would cover both mortgage repaments and salary , in the case of redundancy? or would you have to take seperate producst for each?

Id so does anyone know what would be the best Mortage Repayment Protection product currently avaulable and likewise for salary protection?

I am a full time PAYe worker but am also registered as a sole trader for some part time work I do.

I have a number of properties all with basic Mortgage Protection Policies (reducing over term of mortgage). Do I need to retain these policies on properties I have now rented out?

any thoughts would be gratefully accepted?

GF
 
Sounds like you might be better off with general salary protection insurance if you need such cover - many of the specific mortgage repayment protection policies are poor value for money as far as I know. Shop around or talk to a good broker.

The Consumer Credit Act only requires (in most cases) owner occupier mortgages to be covered by mortgage protection life assurance. Some lenders may still insist on it even for investment property mortgages though.
 
You can take out mortgage repayment protection (MRP) that covers you if you cannot work for 30 days due to illness or redundancy. This cover will pay out for a maximum of 12 months. The monthly cost will be around 5% of the mortgage repayment you want to insure to a maximum of €2500. Thus if you want to insure the full €2500 per month, you would be looking at a premium of about €125pm. There are exclusions so familiarise yourself with the terms and conditions before you sign up.

To cover salary you would need to take out income protection which is a separate policy to MRP.

Any broker registered with PIBA has access to an MRP policy from Cardif Pinnacle (a subsidiary of BNP Paribas).
Irish Life and Friends First lead the income protection market - again a multi agency broker will have access to both.
 
Thanks for the replies.

Does anyone know of any insurers that specifically covers ssalary against redundancy???????????? most Ive seen so far only cover serious illness

thanks again
 
GreenFlag said:
Thanks for the replies.

Does anyone know of any insurers that specifically covers ssalary against redundancy???????????? most Ive seen so far only cover serious illness

thanks again
Click to expand...

I know cardiff pinnacle offer mortgage repayments that covers redundancy but make sure to read the small print. They offer up to 120% of your monthly mortgage payments up to €2000. (ie if your mortgage payments are €1000 per month you can get up to €1200 cover).

Payment made In the event that you are unable to work for a period of 30 days or more due to illness, an accident, or being made compulsorily redundant, or 5 days or more due to hospitalisation.

But if you know you are going to be made redundant the policy will be null and void. It pays out for up to 12 months after accident, Illness or redundancy (redundancy does not include been dismissed for insubordination).

With regards to your existing mortgage protection on rental properties, thats down to the mortgage lender ( I would check with them before cancelling). Depending on your personal circumstances you might be better off keeping the cover.

Ask yourself how it will effect your family if you should pass away tomorrow and seriously consider the consequences. (assuming of course you have a family).

Its normally assumed that rental income property will pay for itself if anything nasty should happen in a family but what if (like now) property prices go down or if its difficult for the family to sell the rental property and are stuck with a big mortgage.
 
thanks for replies.

Liam , I did read the original reply, but prob should have clarified in my last post that I do not live in any of the mortgaged properrties, I am currently renting, so therefore , unless I have been misinformed, there is no mortgage repayment protection I can get against redundancy.

therefore salary protection option against redundancy is the one I have to explore.

thanks again
 
I am familiar with these policies and am wary of them. Its difficult to put in a successful claim.

Benefits will not be paid for any disability claims from medical conditions you knew about at the start date, any medical condition known about even if NOT diagnosed. Backache, self inflicted injury.

If you knew that you would be made redundant or are made redundant with 120 days of drawdown.

Get in touch with the insurance co & get more info. Also remember that if you do sign up they can include extra conditions on your individual policy.
 


The above mentioned and other exclusions should be made clear by your broker before you sign up for MRP and as usual you should always read the terms and conditions. You can hardly expect a successful claim if you ignore the exclusions as with any insurance policy.
 
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