Income Protection Plan

pammiibaby

Hi Im not sure if this is the right place to post this... perhaps someone could advise...

My bank have approached me and asked if I would like to take out the Income Protection Plan with them basically paying them £40 - 50 per month and then if anything, god forbid happens with my job then they will pay a monthly amount ie £500 per month to cover bills etc... Do I really need this as my Loan has a similar protection on it and if I am made redundant or too sick to work it will cover it for a period of time... Can anyone help or advise if I should take this out as I think the bank are just trying to get even more money out of me that I don't have!

any help would be great... Pam xx

PeteHi

firstly £40-50 per month to guarantee £500 a month sounds absurd.
Theres loads of comparison sites out there. I pay £6 a month to guarantee £750. Well worth it for peace of mind!

Presumably your loan protection is only going to cover your loan repayments in the event of redundancy.

scope

PeteHi wrote: »

firstly £40-50 per month to guarantee £500 a month sounds absurd.
Theres loads of comparison sites out there. I pay £6 a month to guarantee £750. Well worth it for peace of mind!

Presumably your loan protection is only going to cover your loan repayments in the event of redundancy.

On the other hand £6 for £750 sounds very low.. I'd like to read the small print for that one. Personally I pay £21 for £800 paying out from day 1 (something to keep in mind when you take out insurance).

But yes, well worth it with the market the way it is now.. Atleast you can cover your mortage,etc, for 12 months (or however long it pays out).

PeteHi

scope wrote: »

On the other hand £6 for £750 sounds very low.. I'd like to read the small print for that one. Personally I pay £21 for £800 paying out from day 1 (something to keep in mind when you take out insurance).

You pay more and it pays out from day 1. I think there lies your answer.

The price depends on a number of factors... if you took it out pre-recession and how long it covers you for, what the excess and claim periods are etc. Its a decent deal yes, and the small print is all good thanks

pammiibaby

Thanks for your advice everyone... I did think it was a bit excessive but I shall look into the small print too and find out all the ins and outs of the policy! many thanks