Payment protection on loans.

[beast rider]

Are they really worth it?

Im looking into getting another loan to bring down my monthly out goings, every where ive looked it seems that the only way i will be able to lower my payments is to take it without payment protection.

Every loan i've had before has been with payment protection but i've never used it, even when i was off due to my bike accident a couple years ago i was still getting paid by work so still able to pay the loan off.

What do you all think?

Is payment protection worth it?

or

Is it just another way to get more money out off the every day, hard working pleb?

[G]

The ones offered with the loan are rarely a good deal.
I believe you can generally get it through another company if you decide you do need it - basically you got to look and see how likely you are to not be able to pay, etc.

[Mr.Everready]

The loans I've had I've never taken it. Although on most occasions the loan was to purchase a large item so if anything went tits up then that item could be sold to pay the loan.

It's really up to youself, if you think that you'll never need it then don't get it.
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[Mrs Kickstart]

Hi
The payment protection included with the loan is almost always a complete rip off.

You may need to consider loan protection but if you do look and income protection that pays out x amount a month that you can use for whatever. Its usally based on a percentage of what you earn.
You can set these up to pay out after a 1 month, 3 months 6 months etc so this can be tied into to amount of sickpay and savings you may have to tide you over if you were just a bit sick. Income protection will often pay out until retirement age if you were permantly incapicated.

The policy vary so check you get what you need. But protecting the income in better than the loan, you need to eat too !

Regards
Charlotte
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[dabigginger]

They basically pay your loan for upto 12 months if you lose your job through redundancy or something similar, or if you're off sick. What I'd personally do, is add 12 months worth of payments onto your final loan amount, and keep the 12 months worth in a safe place, so if you ever do need it, you can cover yourself. Let's face it, you're going to be pretty unlucky to get made redundant more than once during the time of your loan period!

But, then again, if you want that extra security, then go for it.

[nc30 chick]

Total rip off. We took it out with a loan and we decided a year later we were in a position to pay off the loan (it was a substantial amount hence we took the insurance) and we ended up paying back £5000 more than what we had borrowed in the first place because the insurance had been added on upfront on top of the loan. So no I wouldnt do it again.
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[Dragonfly]

I took out payment protection on cards and my mortgage a few years ago. But when i lost my job i went to claim and i was turned down as the other ex idiot partner didnt bother going to work and lost his job, i wasnt allowed to use the protection. Never again! My brother is also in this situation where he has lost his job and now has the debt collectors after him. So much for payment protection.
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Muzza on Binge:
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[beast rider]

Well thanks to all your worldly wisdom i have done some research on line (yes the internet can be used for more them porn ) and doing some calculations i have figured out that the bank charges £150 for payment protection, i can get the same cover from a different company for £18 per month

How the fcuk can the bank charge so much when someone else can do it for so little?

[Mrs Kickstart]

Hi

Becasue most people dont do the sums they just sign, its like comparing interest rates. Some credit cards are as high as 49%.

Regards
Charlotte
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[Nighteyes]

Check out what Martin has to say on what's currently available....

Cheapest Loans

Incidently, this is a fantastic site with masses of tips & tricks on saving money so it's well worth book marking for future use.
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[cqueen]

Banks are fuckers with these. I took a loan out a few years ago, said I didn't want payment protection, what did I get? payment protection!
So I phoned up said I dont want it! they said 'you have to come in with a written statement' (yeah because they couldnt just cancel it there and then). So I went in with written statement asking to cancel it. They cancelled it...for 1 month!!

[syl]