Buying PPI on a loan mid-term

HumanCalculator

This is probably the last question you expect to hear from anyone given the bad press PPI has received, but is it possible to buy a PPI policy on a loan midway through the term, or does it have to be at the beginning of the agreement?

You may be wondering why anyone would want to add PPI, but the reason is simple; I was made redundant in November, with final PILON pay in December. I have a 3 credit cards with a moderate balance, a fixed-term loan, and a car on finance.

The car finance and one credit card have PPI policies, which have really helped, knowing my transport is safe, and 1 fewer minimum payments I am obligated to meet each month.

When I begin working again, I was wondering if it would be possible to add a PPI policy to my fixed-term loan (half-way through the agreement). The other two credit cards will be paid off within 3-4 months of starting work, so not particularly bothered about those.

:beer: Cheers for any advice.

MentalMinnie

I don't think PPI exists now, but you can take out income insurance. I have it, and thank god i do as i'm being made redundant next month. You can get cover for up to 90% of your monthly wages. Think the comparison sites would be the best place to get prices.

jonesMUFCforever

MentalMinnie wrote: »

I don't think PPI exists now, but you can take out income insurance. I have it, and thank god i do as i'm being made redundant next month. You can get cover for up to 90% of your monthly wages. Think the comparison sites would be the best place to get prices.

I would suggest an IFA.
For policies like these it is not just prices you need to compare but the cover.
eg do you just need redundancy cover or would you need sickness cover as well etc etc

HumanCalculator

Hmm, that sounds even better than PPI. I'm sure it still exists, or at least, it did when I took it out on my car loan 2 years ago. All the mis-selling bad press had come out way before that; I was skeptical at the time, but I had plenty of disposable, so an extra £10/month on the repayment wasn't much to ask. Glad I took it. Will definitely look into income insurance - going from taking £1,600/month home to jobseekers' £225 is quite a step down!

roonaldo

Of course PPI still exists. Have a look at this.
http://www.moneysupermarket.com/payment-protection/

You dont need an IFA to take general insurance.

jonesMUFCforever

roonaldo wrote: »

Of course PPI still exists. Have a look at this.
http://www.moneysupermarket.com/payment-protection/

You don't need an IFA to take general insurance.

I wasn't suggesting it was compulsory just that a good IFA would provide a service to make sure that OP had the product that HE needs not what he THINKS he has got.

pheonixrising21

There are companies out there who offer PPI-type policies. I have PPI for my mortgage through a company called Cardif Pinnacle. I'm currently insured for 125% of my mortgage payment, and that onlt costs me around £7 a month (on a mortgage of just under £300 a month).

I have a feeling they also do income protection. The cost will depend on a number of factors;
1) Your income
2) The % of your income your want protecting
3) The length of time you want them to pay out for if you claim (up to 6 months, 12 months?)
4) How soon you want them to start paying out (as soon as you are redundant, 1 month later, 3 months later?)
5) How soon you want to be able to make a claim (some policies will want 3 premiums before you can claim, some will be more, some less)
6) Type of protection (unemployment (redundancy), sickness, accident, all three?)

They may try and throw in a life assurance policy too, to pay a lump sum on death