Income Protection, Life Insurance or other?

creditcardhelp

Hi Guys!

Long time reader of the forums, first time post for me so apologies if this has been answered before but I could not find anything on it on the site.

To sum things up for you – I am 34 years old and live at home with my parents. I have almost £10,000 in credit card debt over 5 different credit cards and I am currently in the process of tackling this debt head on but am also looking at ways I could save money to pay more off my credit card debt.

I currently have an Income protection policy with a company called MMS (Marketing and Management Services). This policy is for £400 per month cover (which is enough to cover payment of my debts each month). I am however paying £17.68 per month for this cover and I think this is a bit excessive as there is a site called Cardif Pinnacle that provides the same policy for £7.60 a month.

A colleague has told me I could get more cover with a life insurance policy for less money per month but I was wondering would I get the same coverage?

At the moment I am getting cover for loss of employment, accident and sickness.

So, I guess I have two questions on this really:

1) Do you think this policy I have is one worth keeping or should I cancel it?
2) Should I maybe switch to Life Insurance instead of Income protection or is there another type of Income Protection policy you could recommend?

Many thanks for any help you can offer on this and apologies for the length of the post – thought I should include as much information as possible.

Thanks Guys!

creditcardhelp

dunstonh

A colleague has told me I could get more cover with a life insurance policy for less money per month but I was wondering would I get the same coverage?

1 - life assurance is not the same as PPI.
2 - what financial need would you have for life assurance?

creditcardhelp

dunstonh wrote: »

1 - life assurance is not the same as PPI.
2 - what financial need would you have for life assurance?

Hi dunstonh,

Thank you for taking time to read my post. Apologies again for the length of it.

The reason I was looking at my PPI situation is because I am currently looking for ways to cut my outgoings so I can pay more money off my credit card debt but at the same time making sure I am covered in case of unemployment, sickness or accidents.

I live with my parents you see and they are both retired so they have very little money to their name so I do not want them to be responsible in any way for my debt should anything happen to me. I am trying to repair my credit rating too so would hate to be unable to pay my bills and damage my rating any further because I hope to secure a mortgage once this debt is cleared up.

I understand now that PPI and Life Assurance are probably 2 different things - shouldn't be listening to work colleagues I guess. Lol.

Thank you for your reply. Is there any other type of insurance policy I could apply for do you think or do you think these policies aren't worth the hassle?

Thanks again,

creditcardhelp

stephenni1971

I live with my parents you see and they are both retired so they have very little money to their name so I do not want them to be responsible in any way for my debt should anything happen to me.

Its nothing to do with your parents how much you owe or who you owe it to. Regardless of anything that can happen to you debt cannot just transfer to another person - unless your parents ever gave a guarantee on your loans.