I just realised the insurance I pay on one of my credit cards actually covers them all, that the loan protection is a ridiculously over-inflated one, lumped onto my loan so that I pay more interest, and that if I cancelled all my policies and found one independent one to cover all my repayments I would be saving thousands.
Just wanted to give you guys a heads up. I have been a complete fool.
2006-07-07 21:58:56 · 13 answers · asked by Bapboy 4 in Business & Finance ➔ Insurance
Insurance should only be bought on things where the loss would be catastrophic.
For most people that would be home, auto liability(collision maybe if it’s new) and life.
2006-07-07 22:10:23 · answer #1 · answered by yeeooow 4 · 0⤊ 0⤋
Loan protection is the biggest rip off going.I had cover on both my credit card and loan and it was costing me a small fortune,approx £400per year.I cancelled both and took out a wages guarantee policy which costs me about £100 per year and guarantees me £250 per month sickness payment which is well adequate to cover my repayments on credit card /loan.Also this policy kicks in 31st day,not 61st day like some loan protection insurance.Also sickness policy is paid on daily basis,not monthly like some loan protection policy's,so you will still get paid for parts of a month.
2006-07-07 23:30:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Insurance is very complicated but you are correct. It is expensive AND it covers (protects) the credit card company. If you die AND you have a balance, the credit card company gets their money back.
Most people would rather have their heirs get the money first, then pay off debts.
Small term policies are a lot less expensive and do more of what consumer want.
Talk with a licensed insurance professional.
2006-07-08 05:41:17 · answer #3 · answered by insuranceguytx 5 · 0⤊ 0⤋
The insurance you refer to is often known as 'payment protection' and is currently under investigation by the Office of Fair trading.
It has for years been common place for loan companies and banks to automatically add on this product to the loan, credit card, mortgage etc, or at least not provide sufficient clarity within applications (e.g. uncheck a box if you do not want this product).
This has led to many consumers (myself included) paying for a product they either didn'trealise they had or simply did not want.
Expect to see further press on this issue as the OFT investigation progresses.
2006-07-12 23:19:55 · answer #4 · answered by Chris G 3 · 0⤊ 0⤋
If you do not check a company before entering into a transaction, you could lose your money, time and credibility. Some widely used resources are the Better Business Bureau (www.bbb.org) and the national fraud center ( www.fraud.org) These days, you can easily find out more about a company using the internet in a few minutes. From a company's website, you can details about its ownership, how old the company really is and feedback from the company's customers.
You can find more detailed information about a company at http://tinyurl.com/gtb89
2006-07-12 20:13:19 · answer #5 · answered by comptermind 3 · 0⤊ 0⤋
Hi Chris you can't borrow your way out of debt ..Write down all your debt everything.. Those so called consolidation companies are losing their non profit status with the government.. I don't think student loans can be part of this anymore ,,but take all your debt information to a lawyer and declare bankruptcy..Get out your mess and forget about it .. Start a new and spend only the money you earn..
2016-03-26 21:20:37 · answer #6 · answered by Anonymous · 0⤊ 0⤋
All credit cards do the same thing. It's funny how it pretty much goes to the same third party insurer. You just have to find the best one and pay the annual membership fee with the monthly coverage for one..
2006-07-07 22:03:42 · answer #7 · answered by drew2376 3 · 0⤊ 0⤋
Yes and No.
Yes because the premiums are too high.
No because the cover is very comprehensive.
I followed a link provided by a National newspaper campaign for freestanding cover, it was very cheap, but the cover was rubbish and the exclusions were extreme!
2006-07-07 22:20:43 · answer #8 · answered by Anonymous · 0⤊ 0⤋
That is what term life insurance is for, and yes you can save thousands by buying one policy to cover all of your debt.
2006-07-08 03:46:25 · answer #9 · answered by Badkitty 7 · 0⤊ 0⤋
Hmm . . . while they are a major scam, I can think of bigger ones - like whole life insurance policies on children, the entire social security system, and that waiver of collision deductible on rental cars . . .
2006-07-08 05:27:16 · answer #10 · answered by Anonymous 7 · 0⤊ 0⤋