illness insurance on a secured loan.....

ellustellus

hi,ive been given a great secured loan quote at 7.9 percent which is good as my credit isnt perfect but they are saying i have to have the critical illness insurance at £78 a month extra to get the loan,can this be cancelled after the loan begins?? i have had trouble with insurance payouts before,i.e. when i was made redundant they told me my payments would be paid,3 months later they said they hadnt been paying them as i hadnt given them my dole number,i didnt even say i was going on the dole! yet they said i had to to get the insurance! theres always loopholes! anyway,can i accept it to get the loan then cancel it?cheers

Tel

Astaroth

You will have a 14 day cooling off period (or possibly 30) in which you can cancel the insurance

ellustellus

so i can cancel the insurance without cancelling the secured loan??

regularsaver1

they should not say it is condition of the loan, unless it shows as that on the agreement and they can explain why - have they said why?

regarding your comment about unemployment cover - most policies say that you should register for job seekers

make sure you always read the benefits and exclusions in policy booklet

Astaroth

ellustellus wrote:

so i can cancel the insurance without cancelling the secured loan??

You would need to check the terms of the loan and also with the bank. In many cases the answer is yes but there are a significant number where you cant

regularsaver1

you are saying that it is a quote at this stage and not an offer

ask to do an application or quote without ppi if you wish

ellustellus

hi,they said i couldnt have the loan without the life insurance as its 20000 and they need some kind of cover on it,without this cover they said the apr would be substantially higher! i'll wait till i get the final paperwork and have a read thru,£78 a month for life insurance is a bit more than id want to pay for 10 years!!

thanks

Tel