Mortgage Protection

[sazzle84]

I have been looking online but cannot find an answer to my query. Before ringing a company I wonder if any of you can help.

I have a mortgage in my own name. I have recently had a child and after lengthy discussions with my husband we have agreed that I will not return to work until our child is older. This got me thinking about how I will need to look into life cover etc which was previously part of my employment package.

We can more than afford to pay the mortgage and bills but what if my husband were to lose his job? The mortgage is in my name. Would I be able to take out mortgage insurance when not working or would my husband be able to take this out even though his name is not on the mortgage. Also, he has bad credit so I'm not really sure what our options are, if any.

[bednobs]

Do you have anything in place at the moment? It's quite unusual not to have life insurance as part of the mortgage lenders terms.
Anyway, it sounds like what you might also need is some sort of income protection policy for your HB - that wont matter that his name is not on the mortgage, because you don't take it out on the mortgage.

[boxtops]

My OH has an income protection policy which was an absolute godsend when he was off sick for six months last year. It paid all his bills, you select the level of cover which you need and the premium is calculated accordingly. He looked recently at the cover when it renewed and it does appear that it could be uplifted to cover the mortgage too, even though (like you) the mortgage is in my name and I pay the repayments each month.

[sazzle84]

Thanks both. Will look into it when he gets in from work.

I have life cover at the moment bednobs but that is a perk I get from my employer. I'm currently on maternity leave so still have this at the mo but won't have any cover when resign.

[boxtops]

OH went with one of the companies listed here.... http://www.money.co.uk/income-protection-insurance.htm

You need to shop around.

[buildersmate]

You seem to be confused about what you want to buy.

You can buy life insurance from a life insurance company for a modest monthly premium, and this replaces the life cover you used to get with your job. That gives a lump sum to your estate in the unlikely event of your death and this could be used by your husband to pay off the mortgage.

However that is not income protection insurance, which your husband could also purchase, in the event of loss of his earnings through redundancy (say). Personally I don't think they are worth the money (unless your husband knows he is in an industry/job that is at risk). His credit rating doesn't really come into it

[boxtops]

My OH's income protection cover was worth it to us when he was off sick last year BM - SSP wouldn't have covered his outgoings.

[buildersmate]

For all the people that 'make money' by claiming on these policies (such as yourself, Bx) more than they;ve paid in premiums, there have to be more that lose out on the deal - and don't forget the significant profit made by the insurer.
But if it gives one peace of mind....

[boxtops]

I wouldn't say we made money on it (not over a period of years of premium payments, no), but the monthly payouts kept us afloat last year at a time we needed it. As you say - each to their own in matters like this.