it is rather expensive, and i could always sell a car i need it for to pay off if my situation is difficult.
i also have savings that could pay off my loan fully if necessary
2007-01-04 22:10:20 · 9 answers · asked by wypizdek2 w 1 in Business & Finance ➔ Credit
Payment Protection Insurance has so many get-out clauses that it is very very rare that it would pay out were you to be made redundant or taken ill.
If you are in full-time secure employment, then depending on the size of the loan it could possibly be worthwhile. However, if you change jobs in this time, are freelance, etc, then they're exempt from covering you anyway.
On the whole payment protection is a complete waste of money and exists only to make more money for the lender. See the link below for more info.
2007-01-04 22:34:44 · answer #1 · answered by onefishtwofish 2 · 0⤊ 0⤋
Dont bother getting it, it is a total scamm and unnessecary if you have a good job and know you can make the payments quite easily.
I had payment protection on a loan of mine, i spoke to a financial adviser who told me to ring the bank as it was a total rip off, since then i have bought a car and had another loan and never taken the payment protection,
they always have certain rules too huge loopholes so its not worth it.
You can actually get payment protection off the internet for a few pounds a month, i cant remember which websites but they will cover the loans you have and pay you money for personal expenses if you ever lose your job, this is much more worth it and definately worth looking into.
2007-01-04 22:20:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Its better to consider Income protection rather than these expensive plans. Income Protection is not cheap but can give you income of 50% of your normal pay if you become sick. See a Financial Adviser for full details.
In your case it would be a good idea to sell the car or pay off the debt but wouldn't you prefer someone else to pay you an income so you could continue the payments and keep your car and savings?
2007-01-04 23:49:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Payment protection insurance may be expensive but it is well worth takin!
Althought a lot of ppl think it is a rip off, the banks have to ask a number of questions around income, sick pay, savings etc. They SHOULD only recommend it when it is worth takin.
The series of questions should be asked by every bank due to regulations set out by the FSA (financial services authority).
Hope this helps.
2007-01-07 06:15:10 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you have the money in your savings why not just pay it off now rather than incurring interest on the loan?
2007-01-05 02:50:33 · answer #5 · answered by Charlene 6 · 0⤊ 0⤋
Most don't pay out for the first two months, unless you think you may be out of work for 2 months or more, don't bother.
2007-01-06 03:09:23 · answer #6 · answered by RUTH M 3 · 0⤊ 0⤋
I would recommend payment protection every time you never know what is round the corner. if you can pay it of you will save hell of a lot in interest.
2007-01-04 22:14:26 · answer #7 · answered by jock_stevenson 1 · 0⤊ 1⤋
Only worth while if you feel that your job is insecure, if in full time, long term employment then I would not bother with it
2007-01-04 22:14:35 · answer #8 · answered by BobC 4 · 0⤊ 0⤋
dont bother
2007-01-05 05:24:20 · answer #9 · answered by dream theatre 7 · 0⤊ 0⤋