Mortgage protection cover help

[hulahoop09]

Hiya

In 2008 we took out a mortgage with halifax which is fixed for 5 years (ends april 2013 when we go onto svr (approx £450 pm which actually works out cheaper than our fixed). We also took out mortgage protection which if made redundant, critical illness I think it is etc they pay a certain amount of your mortgage. Our mortgage at the moment is 76k and we pay £526 a month. I am 29 and hubby is 27. The protection costs us £65 a month.

I have been reading that we could get for cheaper than this etc etc and was wondering if this is the case? How do I go about finding other providers and is it worth switching? As it was our first mortgage we just naeively (spelt right? lol) accepted what they said and they were hard selling that if I remember saying we would be okay if made redundant etc etc. I have read some horrid reviews about it though about problems claiming on it and them not paying out etc etc.

Thanks!!

I have also read that some pay out a lump sum which the amount of will decrease as your mortgage does whereas I believe the one we have with halifax will pay out so much per month. Which are better? Over the 25 years we have had the mortgage we will have paid them an extra £19.5k for mortgage protection. Lol.

 

[Mrs.S.]

if I were you I would be cancelling that answer putting the money in a savings account each month. That way if by chance one of you were made redundant you could use it and if you never have use it in that sort of situation then hey! more savings! I have critical illness cover included in my life insurance so if you have life insurance I would check your policy as it might be included/you could add it for much less Xx

 

[hulahoop09]

Thanks hun! We have life insurance for x3 our salaries if something happens to me or hubby. Not sure if we have critical illness cover, will have to check it out. Only other thing would be redundancy. I deffo need to look into reducing the cost of it.

xx

 

[Mrs.S.]

If you're worried about redundancy I know you can compare redundancy insurance through money supermarket and other comparison sites so might be worth a look? Xx

 

[hulahoop09]

Thanks. I doubt its gna happen but I guess you can never be safe! X

 

[hulahoop09]

Well we have life ins but not critical illness.

The same company can offer us decreasimg life cover to protect the mortgage for critical illness or death for 21 yrs left on it and 5 yrs on a secured loan we have plus mortgage repayment cover for accident or sickness if we cant work. This is 38 a mnth. They offer redundancy in a different policy but gets complicated and nore costly. Hubby wants redundancy cover which would cost us an extra 11 a mnth for him (I 99% am sure i dnt need it) with another company. So all in all we will save 15 a mnth to what we currently pat.

Halifax were kinda like if you cant afford cancel the dd and after 3 mnths policy will lapse. He seemed to want me to cancel and pretty much said i can get cheaper elsewhere! Also halifax only pay 351 a mnth if unemployed whereas new one will pay full amount of 527.

Waiting on medical interview how, hopefully goes ok. I have h/o depression but no issues. I am gna cancel halifax dd and keep payment one side incase we HAVE to go with them!