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Loan - should i get payment protection

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Selecta
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2007/06/09 18:28:22 (permalink)

Loan - should i get payment protection

I have been offered a loan and the company are trying to get me to get payment protection for the duration of the loan (60 months)
I know it is a good thing to be covered but at the cost of about £1300 for the 5 years on top of the interest of the loan.

Anyone else took loans on here..do u think it is better to be safe than sorry and get the cover?
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    Integra
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    RE: Loan - should i get payment protection 2007/06/09 18:29:59 (permalink)
    If you are in a secure job then do not take it.
    #2
    ToxicToffee
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    RE: Loan - should i get payment protection 2007/06/09 18:41:53 (permalink)
    may i ask how much the loan is for?
    #3
    Skrewdriver
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    RE: Loan - should i get payment protection 2007/06/09 18:45:40 (permalink)

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    Snookered
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    RE: Loan - should i get payment protection 2007/06/09 18:56:11 (permalink)
    No, dont use loan protection.

    If you read the small print there isnt much that it protcets you from.

    Simply work out how much the loan protection adds to the loan each month.

    Dont take out loan protection, but but that extra cash into a savings account.

    If you do find yourself out of work for a month or two, use that money to pay the loan.. if not, enjoy the fact that you will have saves ofer £1k buy then end of the loan.

    However saying all of that, my advise would be DO NOT GET THE LOAN IN THE FIRSTPLACE. What ever it is.. you cant aford it, you dont have the cash, save up and buy it when you do. If its an 'essential' like a car.. make do with a banger until you can afford something better.
    #5
    sillynarbie
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    RE: Loan - should i get payment protection 2007/06/09 18:57:15 (permalink)
    There are companies that specialise in offering payment protection often for 20% of the price, it was on TV few months ago. You do not need to get payment protection with the company that does the loan, so have a shop around.
    #6
    Squill
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    RE: Loan - should i get payment protection 2007/06/09 18:59:07 (permalink)
    PLP has its place, for example if your taking out a 25k loan - you would be screwed if you were off work ill for 12 months.....

    if its a small loan and your in a secure job i wouldnt bother - and im guessing the loan is about 4-5k for that PLP price.

    I dislike having to sell it to ppl that dont need it at work

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    #7
    noname
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    RE: Loan - should i get payment protection 2007/06/09 19:05:07 (permalink)
    Had loans over the years, only took the payment protection once and luckily managed to cancel it without too much fuss.

    My opinion would be to not take it. Often a lot of situations that you think it would come in handy the smallprint overides it.
    #8
    Dan Nukem
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    RE: Loan - should i get payment protection 2007/06/09 19:44:18 (permalink)
    I have a small loan, nearly repaid now, I took out protection, the captial was very small relative to the loan.

    If its a small percentage of the loan, I would get it.
    #9
    ToxicToffee
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    RE: Loan - should i get payment protection 2007/06/09 19:48:19 (permalink)
    "for a payment of just £8 a year i can offer you up to £750 per month repayments on your insurance if you are unable to pay for them due to involuntary unemployment or illness"

    who has been paying attention in his first 2 weeks of work?



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    #10
    Wrongun
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    RE: Loan - should i get payment protection 2007/06/09 20:51:31 (permalink)
    I would ask a financial advisor to check the small print and explain in laymans terms when and in what circumstances you will actually get paid. will it cover the loan repayments or just the interest etc etc

    Be careful as sometimes these cover you for nothing and with regards should you take or not it depends on your current circumstances as no one can see into the future

    Wrongun!
    #11
    matt_1972
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    RE: Loan - should i get payment protection 2007/06/09 21:52:37 (permalink)
    IMO, if you are using the loan to pay for an asset such as a car (with a good re-sale value) and you are in secure employment, then no you shouldn't get it.
    #12
    Squill
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    RE: Loan - should i get payment protection 2007/06/09 21:53:38 (permalink)
    Who is the loan gonna be with, most of PLP 9including ours) is done Via Norwich union

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    #13
    BIGKaygee
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    RE: Loan - should i get payment protection 2007/06/09 22:07:45 (permalink)
    I worked for that dodgy Household bank, HFC (Now beneficial finance)
    Mate their PP was NOT worth the paper it was written on!
    SO many clauses as to why you wouldnt be able to claim it was a joke,
    Better to get from a 3rd party that specialises in it and has to attract you to purchasing their product!
    ALWAYS read the small print!

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    #14
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