Mortgage Payment Protection...is it worth it?

Question

We currently have mortgage payment protection & are going to try & find a cheaper policy for it as our one seems quite expensive. But is mortgage payment protection worth it? I've read recently that it is a waste of money & not actually worth having. Does anyone have any advice? Please let me know. Thanks

Answer 1

There is no one size fits all answer. The best thing to do is compare diferrent options.

1) Do you have adequate savings in an emergency fund. (Most sources recommend 6  months of living expenses) To cover your living expenses.  Do you have a disability insurance policy. and finally do you have adequate life insurance.

2)  Make sure you are not duplicating your insurance coverage.

3) Compare Mortgage Life Protection rates with mutiple top rated carriers.

4) Talk to your local agent to determine if they could give a comparative plan.

Personally, I don't have Mortgage Protection.  However, I've made sure to maintain a good deal of life insurance for my family.  More than adequate savings for my personal comfort and a very good disability policy.

Answer 2

It depends,but generally it isn't worth the cost because it only makes the minimum payment and the hassle to file a claim.

If you can put about 3 months of house payments into a savings account for emergencies do so.

If you can make an extra monthly principal payment,you can cut the length of the mortgage and save on the interest.

You will need to write 2 checks unless there is a place to make extra payments on the stub you send in with your regular payment and mark the extra as payment on principal.

The mortgage holder cannot legally collect interest on those payments and you need to keep track of your mortgage and all payments you make and when.

If the insurance is included in your mortgage payment each month,you are paying interest on that insurance too.

That is money you could put aside in a savings account.

If you live in an area subject to economic disruptions like hurricanes,it might be worth while to have the mortgage insurance while you try to rebuild.

Answer 3

I am a ifa and we make a lot of money out of selling insurance and the like sometimes even more than on a mortgage. Hows that for honesty BUT putting that aside i wouldn't say have no insurance at all just make sure its the one for you they are some good ones and bad ones out their make sure you know what your getting. Good luck

Answer 4

payment protection has many grey areas, and its worth reading all the small print before you sign.

if you want protection from job loss, check it out, ask the questions to the protection provider for what you would like to be covered for, jobloss,death etc.

say for exsample you could be covered for redundancey, but what if you was sacked it could be different,

what if your partner died but you was in reciept of his/hers savings over a certain amount, would you still be covered,

its a peice of mind having, but not if your not protected correctly.

Answer 5

Learn all about mortgages here -

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Answer 6

Its only worth it if you feel that you are at risk of losing your job, otherwise you are paying for something that is not likely to be used.

Answer 7

No   it is almost certain that you do not qualify and the insurance company will take your money but not pay out.

this is an 80% probility, so dont waste your money.

Answer 8

Find a broker that handles disability and have them compare the policy you currently have with a regular disability policy that protects your income not just your mortgage payment. Do you have disability protection available at work? If so you may not need the mortgage protection. Will the mortgage protection pay in addition to your employers disability?

Going without some type of income protection is a bad idea. Most home foreclosures are due to unforeseen medical problems.

Try searching yellowpages.com for a Disability insurance broker in your area they are the best equipped to help you sort this out. Don't call you home and auto agent they specialize in property and casualty insurance and disability insurance requires some specialized knowledge call an expert.

Answer 9

Well it depends how much u r paying I guess! Sods law will be that if you ditch it altogether, then god forbid something will happen! Always the way aint it!

Answer 10

Try to use google to find some related links or you could try to use answer engines like yahoo answer or answer.com to find some relevant questions.If you like some direct resource,here is a good one from my own experience.http://mortgage.specialistideas.info/mar...