Mortgage Payment Protection

[FTB1975]

Hi folks,

Just wondering what the general consensus is on Mortgage Payment Protection...complete waste of money or better to be safe than sorry?

I'm secure enough in my job...as secure as any of us are given the current climate, not planning on being sick or out of work for any serious length of time either. I'm really just wondering is it best to get covered at the outset to prevent any difficulty in trying to get it in the event I really need it?

Any thoughts?
Thanks
FTB1975

 

[LDFerguson]

In general, you won't be able to get any type of insurance after you have suffered an insurable event or become likely to suffer one. So the time to be taking out cover is when you don't need it. Thankfully, I also enjoy good health and live a reasonably healthy lifestyle, with a view to staying healthy into old age. But I still have Income Protection and Specified Serious Illness cover because I know that there are plenty of ailments and accidental injuries that are beyond my control.

There's other threads on Askaboutmoney.com about Mortgage Payment Protection. Here's one. If you do a Google search you'll find others.

If your job is secure, you might want to consider Income Protection instead as the premium is allowable in full for tax relief and most importantly the claim can continue for many years (right up to retirement age) if you suffer a long-term injury or illness. Mortgage Payment Protection pays out for a maximum of one year.

www.ferga.com

 

[Verdun]

FTB - Like most insurance its something you buy hoping you never have to use it. For me personally, I would rather put the money away and save it for a rainy day. The premiums for this type of insurance can be quite expensive.