to cancel my mortgage payment protectiin insurance?

[bejeezus]

Trying to slash my budget. I can't afford to live. I'm not extravagent, so there ain't much to slash! I pay £45 for MPPI and 25 for house and content insurance. And £10 for cat insurance an' all.

I know its sensible to have insurance. But the reality is, I've never claimed on any of them and chances are I never will huh?

Tell me I am not BU and I can cancel them and save my money...

I wouldn't cancel house and contents insurance, no matter what.

But I'm very dubious of mortgage protection insurance - I used to work in a bank and we forced this on sold this to people all that time, it cost a fortune and it had so many get out clauses that it was once in a blue moon that it ever paid out. But I'm not telling you to cancel it either, more to go through the small print and see if its really worth it.

oh i don't know. i have this discussion with myself regularly.

but i usually chicken out because I just KNOW that if i cancelled mine something terrible would happen and i'd really need it.

That's what stops me from doing it yesterday but than you do hear stories about them not paying out like treacle says
Good advise to check the small print....and talk myself into it

Maybe ill just get some death insurance sol kids get an asset and not a debt if I die

Mortgage protection is for what? If you die, the mortgage is paid off? Worth it for your kids surely.

Sickness, accident and redundancy also...but actually...not sure what level ode cover I took. Things weren't so tight when I took the policy

Firstly it's all a matter risk. How secure is your job, how much savings do you have and how long can you pay the mortgage for without a job?

I thought long & hard about MPPI last year and basically it's a lot of money for not much pay out. Most companies have either a 1 month or 3 month clause meaning for the first month or three you are screwed. After that they literally only pay for your mortgage and even then only for 12 months.

So let's say your mortgage is £700 a month. They will pay out a maximum of £8400 and for that cover you are paying £540 a year. (I'm making assumptions on your mortgage....YMMV).

Anyway, the point is that you are paying a lot and getting little back. It's fine if you are thinking you could lose your job and you have no savings. But if you have savings or your job is pretty secure then I'd save the cash and selfinsure instead.

Don't forget that if you get JSA then after 3 months you are eligable for some help anyway towards the interest and in the current climate most mortgage providers will accomodate a temporary switch to interest only.

I wouldn't cancel the home insurance and I'd shop around for the cat. Our last one cost £5.60 a month via Tesco and bless them they paid out swiftly and without question despite us only having bought the policy a month earlier and the cat becoming literally ill overnight.

MPPI was useful when OH stopped working due to his illness.
But niceguy2 is right.

It might be cheaper and better to get critical illness insurance to allow for serious health problems/death.

Normally it is a condition of your mortgage that you have sufficient life cover to clear the mortgage in the event that one /more of the mortgagees dies before the debt is repaid. Also, the mortgage company will usually insist that you at least have insurance cover for the cost of rebuilding the property.

You should check the conditions of your mortgage contract before cancelling any insurance which is related to the property.

If you have a mortgage on a house, it's actually a legal requirement to have buildings insurance, so even if you cancel it, your lender will be made aware and will pay it on your behalf, adding the cost to your mortgage balance, so definitely keep paying that. The MPPI means if you make a claim on it (due to accident, sickness or unemployment) the insurance provider will make your monthly mortgage payments for usually 12 months. Normally there isn't a limit on it, they will cover the whole of your monthly payment but obviously check the details! MPPI is a really good insurance to have IMO, and getting harder amd harder (and more expensive) to get so I'd advise you to consider keeping it, as if you want to take it out again in, say, 5 years, you may find that you cant get it or it's even more expensive. there is no legal requirement to have life insurance or critical illness cover. Life insurance is usually quite cheap, but critical illness cover can be much more expensive than you're paying now for the MPPI (depends on your age, medical history, size of the mortgage balance and whether you smoke) so I doubt you'd save money by cancelling what you have and replacing it with critical illness/life cover. Hope that helps with your decision!

By all means cancel the payment protection, but don't cancel your contents insurance unless you can afford to buy all new things if you have a fire or burglary.
Buildings insurance will be a condition of your mortgage I am sure, anyone who would try and do without that needs their head examining.

Cancel the MPPI (but make sure its not a condition of your mortgage first) and get proper life and critical illness insurance.

Keep the house insurance though, but shop around. Ours is less than £20 a month

I wouldn't cancel it tbh - but I would check all the terms and conditions to see exactly what it is you are signed up to.

My mortgage lender keeps badgering me with phone calls, trying to get me to reduce my cover (I have pretty extensive insurance). I figure that if they don't want me to keep it, it must be in my best interests to retain it (they want me to cancel the unemployment cover) . In this climate, if you would struggle to get a new job straight away, I would suggest keeping the insurance.

I hate paying out for unnecessary insurances too, won't have breakdown cover or boiler cover - but we have mppi, it was a lifesaver when DH was made redundant. They paid out about £100 more than the mortgage (we took it out when interest rates were higher). I actually wouldn't cancel mine now as I don't have the savings in place to cover what they'd pay out.

As far as I am aware, the days of having to have life assurance for your mortgage are over. That said, decreasing term assurance is very cheap (the amount you are covered for decreases as your mortgage debt goes down) and 'normal' life assurance (fixed term or whole of life) can be bought pretty cheaply online.

Dont cancel your buildings and contents insurance, you just never know. If you havent claimed, its worth shopping around at renewal time.

As for your mortgage protection, as others have said, how secure is your job? And most important of all, what protection does it give you if you are ill? Also, if you are making pension contributions, what does the policy provide in the event of your illness or death? All worth looking at before you make any decisions.

I agree with those who are questioning whether the MPPI is worth the premium.

I definitely wouldn't go without buildings and contents insurance, though. Have you tried getting it cheaper (probably a silly question, I know)?

We only pay around £250 per year in total for house insurance. That's including extra premiums for full accidental damage, additional cover for OH's watches, an expensive mountain bike he never uses and a couple of pieces of jewellery of mine, oh and with unlimited buildings cover too.

Try the comparison sites and then go through TopCashback?

Don't cancel the cat insurance!! My cat insurance saved my kitties life

I have always been the one to dismiss these types of things for a quick saving, but thankfully for us my dh is more cautious. I was made redundant whilst pregnant with my second child, and we had our mortgage paid for 12 months whilst I was executing and through most of the first year. Made a huge difference to our decisions and stress levels.

I guess with all insurance it seems a waste until you need it...(for instance, we've just renewed a protection plan for our sky tv box thingy-seems a waste at £9 a month but we would be looking at huge costs if we have to replace). Might be worth a re-think.

£9 a month for insurance on a Sky box

Well I wish we had kept our mortgage cover when dp had to have a year off work. That's all I can say.

£9 a month for sky+ box insurance? Ours died recently and Sky replaced the box free and just charged us the cost of postage ( about £20 I think). You would be better off just saving the £9 into a bank account every month!

We got one free when ours died - thank you Freecycle

We had MPPI when we had a mortgage, it wasn't very much, as it only paid out on death.

If you've been sold an all-singing all-dancing policy that you didn't really need, is it worth making a claim on the mis-selling of ppi policies?

Thanks everyone. Won't make a rash decision then, but will look at ankle print

tb how do tour make a claim/ know I'd tour can?

£9 a month for insuring your Sky box!?!? You know these things are being sold for £25 for a Sky+ box and about £40 for a used Sky HD box on eBay!??! Even cheaper if you dig around Facebook for sale groups!

And that's before you call them up to cancel cos your box broke. Give it 5 minutes and they'll be sending you one free of charge.

Save yourself £9 a month and buy your kids some ice creams or something!