loan protection

[penniless]

Im looking into moving my loan of 10000 to another company with lower interest rate, currently with lloyds and v expensive loan and loan protection would any body taje the chance and not pay the loan insurance protection? As i have also heard sometimes it's not worth it as companies will not pay out anyway?

[Loosehead]

Never ever ever take the loan protection, it's the most expensive insurance in history. If you must protect the loan (and by the way if you try and claim they will find a way to welsh on it) get simple reducing term assurance for about 5% of the cost.

[miss_chase]

The purpose of the loan insurance is to pay the loan if you got sick/ill/made redundant etc. If you have another method of paying or are confident that it won't happen/would sort itself out then you don't need insurance (ps you should try and be saving 2 months salary in this case).

I NEVER pay this type of insurance however much they try to sell it to me.

[gordy_b]

I am 25 yrs old. Two years ago diagnosed with MS and off work for 6mths as a result having not had a day's illness in my life. I had an insured loan which paid out 6 monthly payments even although my employer paid me while I was off, money which was very welcome in the circumstances.

Take risks if you must, speaking from experience you can't guarantee your health.

[twiglet4frog]

can u not take out loans from other companies to cover this loan and then ask the new loan company for a few months interest free to get off the ground? a lot may allow it and that would allow u to build up a few months of interest payments ready for an emergancy

[scorpio61]

Why don�t you just get an ASU / PPP (terminology varies but they are both basically the same, ASU accident sick & unemployment PPP payment protection policy) You�ll find that if you have one amount to cover all your essentials (mortgage or rent, loans credit cards) it will work out cheaper than protecting each individual loan or credit card. Keep in mind that an insurance company will only pay if at the time of taking out the policy and the time of the claim everything is 100% in order, and if the reason is long term (longer than 60 days normally) and also only for a limited period of time (normally a year) Try and balance up your actual requirement for the cover against your individual situation. If you are off sick, how long before your employer reduces you down to sick pay, some companies cover up to 12 months, others a week!! If you�re self employed don�t take it out as I�ve never heard of them covering self employeds and if they do I would imagine it to be extremely expensive.
If you want a quote let me know
Something to remember, if through no fault of your own your circumstances change whereby you can longer afford the repayments you have rights. As long as you maintain a sensible contribution there is little to nothing that a creditor can do.

Pete (debt practitioner)
M.D. Chambers Moore Ltd
www.chambersmoore.co.uk