From: "Tumbleweed" 
Newsgroups: uk.finance
Subject: Re: Mortgage Protection & House Purchase
Date: Wed, 19 Nov 2003 20:51:04 -0000

"Rob Graham"  wrote in message
news:bpgdl4$1naa9s$1@ID-169269.news.uni-berlin.de...
> The words 'Mortgage protection' can either refer to insurance against your
> dying or getting a critical illness, or both, or it can mean protection to
> pay the monthly mortgage payments plus a bit if you fall ill or become
> redundant. The phrase gets used for either.
>
> Most lenders do not these days require either of these as part of the
deal.
>
> If you have no dependants or spouse/partner, I would suggest that you do
not
> need life cover because if you die the house gets repossessed to clear the
> debt. But you may well want critical illness cover to pay off the mortgage
> if you get a critical illness and don't die. This is your choice.
>
> You may also want the payment protection so that you can maintain the
> payments even without an income for a year or two.
>
> Rob Graham
>

Very few policies pay out for more than a year, and even then in the small
print some of them count the year of payments as including the first three
months when you dont get any pay out, ie you'll only get 9 payments at best.
Check the policy wording *very* carefully before taking one out and consider
whether you'd be better off putting some money aside each month yourself
instead. From what I recall, after 2 or 3 years you are quids in compared to
what you are likely to get back, especially if you manage to get a job
within 6 months or so (for example, for many policies that means they'll
only give you 3 payments).

-- 
Tumbleweed

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