PPI AIB mortgage

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Familyman77

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Looking for a bit of advice. We have PPI from AIB which we took out with the mortgage in Feb 2009. Its 100% cover and is 5% each of our repayments. So at the moment is €115 per month. We took this PPI when we were both working. My wife gave up work to be a carer for our first son 6 years ago as he has additional needs and numerous appointments etc meant she could not juggle the 2. I hadn't thought about this PPI until recently and so I rung AIB to discuss whether we are over insured now with only the one income coming in and with this likely to remain for the foreseeable future. They were of no use at all and just sent out a letter confirming the cover we have and that if we want to change we cant get our existing cover back the same as they dont do this anymore. Just looking to see if there are other types of policy that people would know of or if the policy I have is worth holding onto. Thank you
 
I have always read, often on AAM, to avoid these polices, and go for income protection instead.

I pay 0.86% of my gross for income protection that will pay me 75% of my salary.

I get 40% tax relief on that, so the net premium is 0.52%.

That is much cheaper than 115 pm / 1,380 per year.
 
Thanks Protocol. I ran a quick online calculator and it looked a bit more expensive but then the PPI only pays out for 12months. The advantage of the PPI though is that it covers redundancy aswell.
 
Whatever about whether you should have PPI or not, that's another discussion, I would think based on my past experience the amount you are covered for is the same now as it was when your wife was working. The way many of those policies worked was the price was based on the repayment amount it covered so say your payment is 1k pm and the policy covers 80% of that, if both were working and one was was out of work it then paid out 50% of that cover as only half the income was lost (for simplicity) so now that there is only one income then it will still pay out 80% of repayment. They didn't charge extra based on it being joint rather than single as the payout was reduced on joint ones.

Now having said that check your own policy terms and conditions.
 
We had cause to claim on the policy a few years ago when my wife broke her leg and was off work temporarily. Even though I was still working the insurance covered the full mortgage. We only had to continue payment of the insurance
 
You obviously had a slightly different one so, if you are paying extra for joint cover then it is pointless if your wife is not working but if the bank say they can't reissue or change it anyway as not doing it anymore then it's kind of neither here nor there.

How great is your risk of redundancy? If on the lower scale then I would consider income protection too to be a better plan but of course it's all a question of risk v cost.
 
I'm in the private sector construction so there is always the element of risk there versus public sector. I suppose I need to look at it along the lines of I'm paying ( rough figures now ) €750 per year to insure a figure of €15000. My policy only covers for 12 months
 
I've done a bit of delving into finances and realised that I also have a sickness scheme in the CWPS pension that pays €220 a week for 10 weeks. I'm really starting to think I'm wasting money here
 
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