Do I need PPI on a loan

buzzby

Hi

Wasn't sure where to put this as theres probably thousands of threads about PPI's.

Was looking to take out a loan and was wandering if I should take out PPI on the loan or not.

I see a lot of people are claiming it back, whys that?

Does this mean I shouldnt take it out.

Cheers

Buzz

Wutang_2

I would take it out and then reclaim the premiums

CLAPTON

Why do you feel you need it?
What features are you concerned about
Does your job cover any of them (sickness e.g.)
PPI only covers your loan... if you were made redundant would that be your first priority?
Have you read the detailed T&Cs... are you elegible.. self emplyment isn't often covered; you often have to have been employed for at least a year etc. voluntary redundancy isn't covered

have you looked at what they actually cover... they often only start paying after 3 months and only make the monthly loan repayment for a year..so at the end of the year you still owe most of the debt


PPI is usually very much more expensive than the equivalent ASU (accident, sickness and unemplyment)

Look up the equivalent cost of ASU and compare the cover with the PPI

and bear in mind tha ASU pays you directly and then you can spend it how you wish

BigDave81

I've had 3 loans previously and never felt the need to take the PPI option, it made the loans extremely more expensive.

I changed jobs whilst paying two of the loans and there never seemed to be an issue.

As mentioned it really does depend if you are worried about accident, sickness or losing your job, it's nice to have the protection but it comes at a high cost usually and someone time you may not be eligable anyway.

~Brock~

Wutang wrote: »

I would take it out and then reclaim the premiums

Good answer - where else can you get a guaranteed 8% return on investment nowadays!!!:beer:

di3004

There are also stand alone insurance, but make sure it suits your requirements, you will find some info on here.
http://www.moneysavingexpert.com/insurance/cheap-loan-insurance

It should be optional.

[Deleted User]

In short, no.

melorablack

If you really want it it's always better to get a monthly premium policy. Don't let them sell you a single premium whatever you do!

buzzby

Also is there anyway of knowing how much a bank can lend you before applying?