Loan insurance

zippyandgeorge

I need to get a £5,000 loan. I work full time and my job is secure (as far as I know). We all know in todays climate that could change at any minute. That is the worrying part for me taking out a loan and then becoming unemployed. My worry is if I took out a loan of £5,000 over 5 years and I got made redunadnt in say a year or two if I didn't get a new job in 12 months I would be struggle to make the repayments out of my unemployment beneift.

If I took out a loan I would want good insurance in case I did get made redundant, have an accident or become sick.

I have done a quick search of insurance options and it seems you can only get 12 months cover should you become ill, have an accident or get made redundant.

Is it possible to get longer than 12 months cover?

Is it possible to get insurance that would totally pay the loan off should you become ill, have an accident or get made redundant?

DCFC79

Is this what a savings pot is for ?

dealer_wins

Specialist companies offer cover for accident, illness and death. You will also find redundancy insurance but with a maximum of 6 or 12 months cover (Otherwise some people might not bother looking for another job)

PeacefulWaters

You want PPI. Great policy!

zippyandgeorge

So is it possible to get PPI that will cover me longer than 12 months should I become ill, have an accident or become unemployed via redundancy?

Is there somehting better I can get than PPI? I am just thinking about all the wrongly sold PPI.

jonesMUFCforever

zippyandgeorge wrote: »

So is it possible to get PPI that will cover me longer than 12 months should I become ill, have an accident or become unemployed via redundancy?

Is there somehting better I can get than PPI? I am just thinking about all the wrongly sold PPI.

In a word NO.

If you are really worried so much about losing your job perhaps forget about the loan and save up.

CKhalvashi

zippyandgeorge wrote: »

So is it possible to get PPI that will cover me longer than 12 months should I become ill, have an accident or become unemployed via redundancy?

Is there somehting better I can get than PPI? I am just thinking about all the wrongly sold PPI.

Save up whatever you think the insurance would be, and hopefully have some money at the end of it is my advice.

For £5000 though, is it really so impossible to save up for what you want, rather than taking out a loan for it?

magpiecottage

DCFC79 wrote: »

Is this what a savings pot is for ?

If the OP had a savings pot presumably they would not need a loan - or at least not as large a loan.