Unemployment Protection Insurance

[A1Mikey]

If such a policy is attached to a bank loan, does it pay off the bank loan or just the monthly installments? Also, does the fact I was dismissed rather than made redundant have any bearing on the pay-out?

[ummmm]

I had protection insurance on my credit card. It didn't cover getting sacked.

[ChuckFickens]

As ummmm said, those protection schemes never (in my experience) cover you if you leave of your own accord or if you are sacked.

[CheekyChops]

and even if it did cover you for being sacked, it would pay the monthly installments until you got another job (or some only pay for a fixed period, say a year) and not repay the whole loan.

[chrissa1]

We were mis-sold PPI even though they knew that my husband was self employed. We have spent the last year trying to reclaim it via the Financial Ombudsman and a company well known on the TV and we are still waiting. it was a Rip off!!!

[theshedman]

Hi Mikey, as the others have said it will not cover you if you have been dismissed. They only pay out for a short time while you are ill and only then if you have been in the job for over a certain period. They also only payout the amount of the instalments so as soon as you start back you start paying again. My own bank sold me this type of insurance knowing that I could not claim. I didn't do as chrissa did and go through a company I just downloaded Martyn Lewis's form and sent that in. After a couple of these letters and the bank still not wanting to pay out I sent the next one to the Ombudsman as Martyn says to do and it was finally all paid back plus interest. These companies offering to get it back for you are only doing what is easy enough to do yourself and charging you about 30% of what you get back.