Ppi

continualdiamond

Is it worth taking out? Do many people successfully manage to claim when needed or do they find its worthless?

Rafter

Depends on your attitude to risk.

It is almost never worth taking out from the company selling you the loan.

A standalone policy is often cheaper and easier to make a claim on.

If you are in a secure job and reckon you have enough put asside to manage for 3 months if you did loose your job and have to find another one, you might risk managing without insurance. If you died or were seriously injured your loan is unsecured, so you probably should be more concerned about your health than your credit rating.

R.

Astorette

A decision on taking out PPI is a personal one. My partner does not agree with it but I have worked in this area of insurance previously and believe strongly in it.

It protects you from periods when you cannot work due to sickness or unemployment and can pay up to five years of benefits dependent on who you are insured with.

What you have to consider is if you were to have to take time off work could you afford to repay the monthly repayments. If the answer is no then you should have protection. (you should also consider the wisdom of taking out the loan/overdarft/mortgage in the first place)

In addition if you already Sickness/unemployment cover seperately then there may not be a need for it dependent on the standard of living you are hoping to mantain.

regularsaver1

It took my dad 6 months to find the job after being made redundant - and he is a skilled professional

And remember the salary might not match your original one

Advisers always recommend a rainy day fund of at least £3000