Loan payment protection

Payment protection insurance is nothing but a massive rip off huge source of profits for the high street banks.

My advice would be to take out loans without insurance. Use what you save to pay off your debts more quickly. If the worst happens then that'll be the time to think about how to either a) manage payment of your debts over a short term when you're not working or b) re-negotiating your repayment terms with your debtors if you're going to be out for longer.

All I can say on this topic is that when I fell ill after buying my wife a new car it was paid for all the time I was not working and all they wanted was copy doctor certs
In the final outcome they paid for 18months so all I actually paid was the deposit and the last six payments= one very cheap car
I know everybody's circumstances are different but I prefer to safe and buy for cash whether it be car,bike whatever but I was glad of the insurance in that instance

[northwind]

Originally Posted by northwind

High street banks' payment protection tends to be extortionate, and not particularily effective. Take us (HBOS). 10,000 over 5 years costs £259.14 per month with insurance- that's £15,548.40 in total not including arrangement fee.

Now, without the cover that's just £196.60 per month, £11796 exactly, saving £3750 over 5 years. If you prefer, you could pay off the £10000 over four years instead with a lower monthly fee. But to put it differently, the bank is taking £1796 off you without cover for the loan- £5548.40 with. It triples the cost of the loan.

Unless I miss my mark, that covers you at most for one year with disability, critical injury and redundancy. Which is absolutely rubbish, you're paying that much extra in premiums over the course of the loan. I sold those things for 4 years, and generally the only time it was a benefit was customers who we wouldn't cover anyway!

I'd always, always have recommended anyone considering this to consider full income protection instead, it's generally cheaper and better. Our repayment cover is more or less industry standard, some are more expensive, not many are less

i looked at these for a friend, for their prices id take it out

http://www.paymentcare.co.uk/quickqu...action=process

[pegasus]

i have to agree with mac since my accident in january i havent been able to work but my protection policies have

1. paid my mortgage
2. paid my car
3. paid all my credit cards
4. paid me £100 per day for each day in hospital (21 days)
5. paid me a lump sum for personal injury (this is an optional extra)
6. and finally provides me with an income

i will end up going back to work after 12 months sick leave with no debt at all and a clean credit history

for me it was worth the few extra quid
hth

[northwind]

Their income protection looks pretty good- income protection is often a better deal than loan or mortgage protection, since those just cover your bills- income protection covers everything (well, usualyl up to a percentage, say 75% of your income)

[timwilky]

I had a former colleague who had income protection, it really helped him when he was made redundant. However, he had had the policy for about 10 years so it was doubtful as to whether he actually got back all the money he had paid as premiums.

I never take out payment protection on cards, etc.

Got critical illness and life cover, that's it.

Originally Posted by pegasus

i have to agree with mac since my accident in january i havent been able to work but my protection policies have

1. paid my mortgage
2. paid my car
3. paid all my credit cards
4. paid me £100 per day for each day in hospital (21 days)
5. paid me a lump sum for personal injury (this is an optional extra)
6. and finally provides me with an income

i will end up going back to work after 12 months sick leave with no debt at all and a clean credit history

for me it was worth the few extra quid
hth

Paid all those debts in full? I am in the process of buying a house and none of the insurances would pay everything off unless I had a terminal illness/died they would only cover the payments for the period of time after my sick pay run out and before i went back to work.

[pegasus]

[

Paid all those debts in full? I am in the process of buying a house and none of the insurances would pay everything off unless I had a terminal illness/died they would only cover the payments for the period of time after my sick pay run out and before i went back to work.[/quote]

no not all, they have continued paying my car which is now paid for and my mortgage, i have now since sold the house, but they did pay all my credit cards completely.

no disrespect intended but i think you havent been offered the full range of packages that are available...or very possibly some of what were excellent protection policies that were available have now been pulled from the marketplace

just to emphasise that i have been off work since january and possibly will not go back to work till next year at some stage..so we are talking quite a lot of money from all these policies,
with everything combined i am pretty sure it is around the £60,000 mark for 12
months

if you are willing to pay you will get whatever service you want.

hth