tsb has offed me 25k loan. what would happen if i fall out of work. and i put the money in my build society?

Answer 1

Take out insurance against unemployment.

Answer 2

If taking on a debt it is always important to make sure you are protected if anything happens to you.
You will still need to pay if:
- you die
- you are critically ill
- you are off work sick or have an accident or are in hospital
- you lose your job
- you become disabled

I work for a bank - not Lloyds TSB right enough ( they're the competition) and I sell loans and talk to people about insurance, often people will say to me - "I won't get sick" or "I'm not going to die - I'm only young/in good health" or "I won't lose my job" the reality is none of us know what is round the corner, my personal experiences over the last 3 months have confirmed this fact.
I am only 22 and on the 10th of April I was driving to work and a lorry came round a corner and ploughed into me at 60 mph head on. I was lucky - I didn't need to claim on the life part of my policy on my loan but I did claim on the accident cover.
My manager and friend at work who has just turned 50 was diagnosed with cancer about three weeks ago- he's never smoked in his life, isn't overweight, only drinks in moderation and plays golf or football at least three times a week.

If you aren't going to take the payment protection insurance on your loan please at least make sure that you have a stand alone life cover arranged and some income protection insurance.

Answer 3

I never take out Insurance with a loan it is a rip off. If you are in a secure job and you know you can make the repayments each month you should not be worried.

If you do not repay your loan or instalment by the due date, the loan may be referred to a credit agency for recovery. If legal action is required to recover the debt, you will be liable for legal fees. The Credit Reference Association may be notified of your default.

This sounds a bit dodgy to me why would you want to put the money into your Building Society.

No matter what they will recover the money somehow!!!

Answer 4

unless you have payment protection you would still be liable for the repayments - even with payment protection, it usually only cover repayments for a 12month period at at time, you would have loads of forms to fill in and if you couldnt work because of illness there would be endless medicals and doctors letters that you would have to pay for - think carefully before borrowing that amount of money, you could end up losing more than you bargained for!!

Answer 5

All they will care about is that you make the repayments ...