Payplan Additional Products

BrightLights14

Hi All,

I have my annual review with Payplan coming up & I'm wondering if it's worth cancelling the 'additional products' I currently pay for. These are:

- Payment cover (which covers my debt payments at their current levels for a certain period if I'm ever off sick or made redundant, excluding being signed off for anything to do with mental health) - £15/month

- Life cover (pays of my remaining debts if I die before completing the DMP) - £5/month

The amounts are deducted from my monthly payment, so basically if I never need the schemes it goes into Payplan's pockets (presumably to help when people do need the schemes) rather than to my creditors.

I think I'm going to cancel the life cover as my life assurance means my OH would get 4 x my salary in the event of my death, which would easily pay off the debts anyway - however does debt automatically get passed on to a next of kin if I die? Would this harm his credit rating regardless of how quickly he was able to settle them? And what does everyone think of the payments cover?

Any thoughts/advice much appreciated. Thank you

sourcrates

Hi,

Just another way to make money from you in my opinion.
Payplan have been heavily criticised for the wide scale selling of, what most people would concider, unnessesary additional financial products.

The payment protection is essentially PPI and will be full of get out clauses and useless for the majority of people.

I would say life insurance is just as worthless, debts do not transfer from one person to another, your debts die with you, if there's insufficient funds in your estate when you die, they don't get paid, it's that simple, no one else will ever be liable for them.

National_Debtline

Hi

Do you own any assets that would form an estate if you die? If not then then your debts would be written off as sourcrates says. No one else becomes liable for debts in your sole name and it wouldn’t affect anyone’s credit history.

If you have an estate when you die, such as equity in a property, your creditors can potentially claim their share of that estate. In that case sometimes a remaining partner might decide to pay off the debts in order to keep the house, for example.

If you don’t own assets then an option such as bankruptcy might be a viable way to have debts written off instead if you have a change of circumstances and can no longer afford the payments.

James
@natdebtline

BrightLights14

Thank you both.

Think I'll cancel the life assurance and read the t&cs very carefully for the payment protection. I must admit, it does make me feel a little bit more secure but given my medical history the only thing I'm likely to get signed-off for is anxiety or depression, for which it would be worthless (and it frustrates me that they're even allowed to discriminate again mental illness!).

Thank you again :A:A