quick question re loan insurance

denisec60

Could anyone please tell me - can payment protection insurance be added to a loan that is already in existence? If it's at all relevant, two years into the loan a payment has never been missed/late and there have been no change of circumstances, financial or otherwise, since taking out the loan. Many thanks.

dealer_wins

denisec60 wrote: »

Could anyone please tell me - can payment protection insurance be added to a loan that is already in existence? If it's at all relevant, two years into the loan a payment has never been missed/late and there have been no change of circumstances, financial or otherwise, since taking out the loan. Many thanks.

Normally these policies can only be taken out when the loan is agreed.

There are many insurance companies who sell standalone accident/illness/unemployment cover, which will almost certainly be better value and have better cover than policies sold with the loan!!

ConsumerWizkid

You can't apply protection to existing loans nay, but as per above you could potentially buy insurance independently. You can expect to have your financial situation reviewed to understand your reasons for purchasing much like medical insurance. Medical insurers won't ensure an old man with a few months to live so keep that in mind when considering this option to protect your loan payments.

denisec60

Thank you for these replies, much appreciated.

Academic, as protection can't now be added specifically to the loan, but the thought was borne, not out of any change in circumstances, but out of that nagging 'what if?' feeling that makes you think about insurances.

Looked at the accident/illness/redundancy cover as suggested and it seems reasonably affordable... or at least in the sense that it's reasonable enough to help ignore the voice that says "it'll be a waste of money, don't do it" !