how to insure debt

lizzydrippin

Is life insurance the best way to insure debt I do not have a mortgage,
I am renting and I have about £15.000 debt mostly in my husbands name.
I have 2 dependant children and no income at the moment as I have been made redundant my Husband is still working for the same company.
I am also worried incase he to is made redundant.

McKneff

You cant insure against debt, not sure what you mean actually.

Your husband can take out redundancy protection so that if he is made redundant the insurance will pay the installments.

The insurance doesnt normally kick in till its been in force roughly 90 days so if you think he may be made redundant you need to get a move on. You cannot take out this insurance if you have any information that redundancy is on the cards.

Are you entitled to JSA or any sort of benefit. You could ring the DWP to find out especially as you have children.

lizzydrippin

Hi thanks, I have no specific information to say my husband will be made redundant I am just concerned. I had guessed I would be and wish I had followed my gut instincts then. when I say i want to insure my debts I mean so they are payed off if I die. I havent signed on yet have only just started looking for work. trouble is I am to emotional and have already messed up one interview by crying but I will need some income soon or our debts will get even worse

ACG

you can have PPI (Payment protection insurance) this usually pays of 10% of the insured debt each month for upto 12 months.

They sell this with loans, or you can have it on overdrafts and credit cards etc.
Im not sure if your eligable for it or not as i dont know enough about it but im sure it covers if your made redundant or unable to work due to sickness. Someone maybe able to offer more info.

.....
Sorry just read it properly. You wouldnt be able to take it out. Your husband maybe so long as he has not be told he will be or could be made redundant.
It will only cover the debt if its in a joint name or your husbands. If its in your name only then there is no chance.

McKneff

You can insure your life of course but they will only be paid off if your OH decided to pay them off, because these debts are, to all intents and purposes, his because they are in his name. Really his life needs insuring also to help you if the worst happens. I dont know yur asset situation but if you/he have no assets (ie) house, car, jewellry etc then the debt is written off.

Square your shoulders and tell yourself youre going to be more positive for your children's sake.

Up and at 'em girl. If yu have been through labout twice you can do anything lol

Regards
Annie