Mortgage Repayment Protection

Our Broker has advised us to take out Mortgage Repayment Protection because my husband is self employed. We have got a loan offer for our mortgage from BOI and I was wondering how it all works.
If our Mortgage is 1200 per month how much should we be covering the mortgage for in order to cover half of the payment if my husband is ever off sick??
Any further information on Mortgage Repayment Protection or a different policy for self employed sole traders would be greatly appreciated.

Thanks.

I don't like Mortgage Repayment Protection for self-employed people as it only covers against your husband being ill for longer than 4 weeks, but with a maximum claim of twelve months.

So if your husband is out of work for longer than 13 months, you're on your own.

An alternative would be Income Protection, which will pay a claim for as long as he's out of work, right up to retirement age if necessary. Income Protection premiums qualify in full for tax relief.

But the claim only starts after 13 weeks with Income Protection. And some occupations won't get cover, others only at a high premium.

Liam D. Ferguson
www.ferga.com

He could take out a personal accident policy which would cover him if he has an accidental injury. There are capital benefits (lump sump) for permanent disablement (loss of limb etc), but more interestingly they pay a weekly sum e.g. €400 up to 52 weeks, medical expenses, hospitalisation etc etc.

It wouldn't cover him if he just fell ill but the cover is not that expensive so its worth having.

Of course your broker wil recommend it - he/she will get commision off it.
There are so many terms and conditions in these payment protection schemes - you might be better off just saving the premium money in the bank. If things get really bad - the welfare system will help a bit.