Repayment Protection

Captain_Cashless

Hi Readers,

Newbie here... so I'm not sure if I've posted this thread in the correct section. Anyway, here is my query: I have just taken out a personal loan with my bank, which I needed for my current personal circumstances - and now my bank is trying to sell me a repayment protection policy (not PPI), over the term of the loan.
Basically, they have two options on offer: one is Critical Illness Cover, which very few of the policy features and benefits seem to be relevent to me. But it is extendable over and above the term of my loan, as it also comes with Life Cover. However, I already have Life/Death In Service Cover with my employers. And the other, Essential Earnings Cover, which appears more suitable out of the two (but much more expensive), would cover a percentage of my monthly salary, until the end of the loan term. With this particular option, the more you put in, the more of your 'lost' salary would be compensated in the event of not being able to work.
I have yet to read the policy booklets in more detail, but before making a final decision, I wanted to seek some advice as to whether there are other lenders/financial institutes out there, who can offer similar policies but at more competitve rates.
Your advice and recommendations would be much appreciated - thank you.

[Deleted User]

i`m sure google will be of help,my advice is you should be wary of these policies as if you claim they do their utmost NOT to pay out,personally i`d put whatever this will cost you every month in an isa as back up

Tixy

If you decide you do want some sort of income protection policy - then I would shop around for the best deal, not just go with what your bank are trying to sell you, the chance of it being the cheapest deal is slim.

pheonixrising21

Tixy wrote: »

If you decide you do want some sort of income protection policy - then I would shop around for the best deal, not just go with what your bank are trying to sell you, the chance of it being the cheapest deal is slim.

I agree. I was offered PPI with my mortgage to cover 125% of the monthly payments. My bank were going to charge £40 a month, and they included the name of the underwriter (Cardif Pinnacle). I went to them directly and am paying just over £7 now for the same cover with the same company.

I think they also do full income protection too.

Captain_Cashless

woodbine wrote: »

i`m sure google will be of help,my advice is you should be wary of these policies as if you claim they do their utmost NOT to pay out,personally i`d put whatever this will cost you every month in an isa as back up

You wouldn't think that a reputable bank and lender would make life difficult for you, in the event of a genuine claim... but perhaps you speak from experience?? I'll use a search engine to see who's offering what and also, take a look at investing into an ISA. Thanks John.

Captain_Cashless

Tixy wrote: »

If you decide you do want some sort of income protection policy - then I would shop around for the best deal, not just go with what your bank are trying to sell you, the chance of it being the cheapest deal is slim.

That's exactly what I intend to do... shop around! And that's why I came on here to get some feedback from people who can make suggestions from their good or bad experiences.
Thanks.

Captain_Cashless

pheonixrising21 wrote: »

I agree. I was offered PPI with my mortgage to cover 125% of the monthly payments. My bank were going to charge £40 a month, and they included the name of the underwriter (Cardif Pinnacle). I went to them directly and am paying just over £7 now for the same cover with the same company.

I think they also do full income protection too.

It just goes to prove that in some cases, you're much better off approaching the Underwriter directly, who are providing the protection policy for the lender in the first place. The plans my bank is offering are underwritten by Scottish Widows - maybe I will contact them directly and see if the same protection plans cost significantly different.
Thanks.

[Deleted User]

Captain_Cashless wrote: »

You wouldn't think that a reputable bank and lender would make life difficult for you, in the event of a genuine claim... but perhaps you speak from experience?? I'll use a search engine to see who's offering what and also, take a look at investing into an ISA. Thanks John.

I speak from an experience that has cost me £250,000 in so called income protection over the last 15 years

Captain_Cashless

woodbine wrote: »

I speak from an experience that has cost me £250,000 in so called income protection over the last 15 years

That is pretty shocking John! I hope you're in a comfortable position now... or at least working towards being in a better financial position.
Regards.

[Deleted User]

Captain_Cashless wrote: »

That is pretty shocking John! I hope you're in a comfortable position now... or at least working towards being in a better financial position.
Regards.

they refused to pay out even after i took legal action

Captain_Cashless

woodbine wrote: »

they refused to pay out even after i took legal action

Pressuming you had valid and substantiated grounds on which to make a claim upon, how on earth did your legal reps not succeed in your case? Or maybe it's just to complex to explain??