Help..Loan Insurance

jawa1

I already have Mortgage Payment Protection Provided by Pinnacle Insurance plc,.

If I get an unsecured personal loan for 3 years can I increase my Mortgage Payment Protection so it covers the Mortgage cost and Loan cost if I was unable to pay it e.g redundancy.

Or would I have to get a separate Payment Protection policy to cover the loan?

Rafter

depends on your policy.

Just don't be tempted to go with the insurance offered by the loan company. It will be VERY OVERPRICED.

It is much cheaper to buy the insurance direct from an insurance broker.

Two things to bear in mind too:

1. Most insurance policies only pay out for a year.

2. If you were seriously injured or died, this is unsecured debt anyway and might be covered by existing life insurance?

It is therefore often cheaper to 'self insure' by borrowing more than you need and keeping the extra money in a savings account. If you were made redundant you could use this money to meet payments and once your loan is substantially paid you can use the savings to pay it off. The cost of doing this is often a lot less than an insurance policy.

Good luck.

R.