Help!! Need advice please!

AntNLuce

OK I'm looking to make a fairly major purchase 31k (approx) and don't want to run the risk of losing what I'm buying. To be 100% safe (and have total peace of mind) I'd like to buy some insurance against not being able to keep up repayments if I become a) unemployed or b) sick. I would like to cover a period of 36 months so my first question is can I get cover for this period of time and secondly, if so, where can I get it most cheaply??
Thanks.

nickmack

AntNLuce wrote: »

OK I'm looking to make a fairly major purchase 31k (approx) and don't want to run the risk of losing what I'm buying. To be 100% safe (and have total peace of mind) I'd like to buy some insurance against not being able to keep up repayments if I become a) unemployed or b) sick. I would like to cover a period of 36 months so my first question is can I get cover for this period of time and secondly, if so, where can I get it most cheaply??

You can never be 100% sure that any such policy will pay out. Unemployment and sickness will both be subject to various conditions being met, so you'd need to make sure they were suitable for your circumstances.

Is this purchase a car? How are you funding it? How long is the repayment period?

AntNLuce

Hi Nickmack,

Thanks for your reply. I am looking for 36 months because the payments that I am making are for 48 months but I have enough reserve to cover one year of payments.
I am just after a policy that will cover me for 36 months but I am unable to find such a policy...so far and this is where I need the help.

I am now also curious as to why a policy may not pay out (should I need it) if I have done everything correctly and above board?? Can anyone elaborate on this please??


P.S.
I wondered if a way around me needing 36 months cover was to take out multiple policies i.e. 3x12 month policies?? Is this legal/allowed?? Can a 12 month policy be extended at the end of the existing year?? Any help would be very gratefully received.

nickmack

AntNLuce wrote: »

I am just after a policy that will cover me for 36 months but I am unable to find such a policy...so far and this is where I need the help.

I am now also curious as to why a policy may not pay out (should I need it) if I have done everything correctly and above board?? Can anyone elaborate on this please??

Firstly, have you read Martins article on Payment Protection Insurance? It can be found here:

http://www.moneysavingexpert.com/insurance/cheap-loan-insurance

This compares some of the cheapest providers for Sickness and Unemployment insurance with various levels of cover. You can get a quote from some of the sites he mentions.

If you have specified all your details accurately and truthfully, they should pay out in the event of a claim. However, ensure the policy details do not contain a large list of exclusions that may prevent a payout in your case. Such examples may include Pre-existing conditions, Self-Employed, Employed for less than x months and Prior knowledge of pending unemployment.

AntNLuce

Thanks Nick,

I did have a look at the link you mentioned on the site but couldn't find specifics.
I would need the insurance to cover the upkeep of payments and not a loan with it. i.e. just insurance because I got a very competitive rate from the company that I'm actually buying from BUT they only offer 12 month insurance.

It's for a car (a car I have wanted since I was six!! :j ) and I don't want to run ANY risk of losing it hence the need for insurance for 36 months (preferably) I realise I'll probably not need it but I just want total peace of mind. As I say I have been unable to find any companies that insure for this period of time so I was wondering if I can source from different insurers at once (if this is lawful?) or could I cover 18 months at twice the amount needed??? Is this allowed??
As I say, I'm probably just being paranoid but I don't want to take any chances. I guess this is what insurers prey on! But I'm happy for that.

nickmack

AntNLuce wrote: »

I did have a look at the link you mentioned on the site but couldn't find specifics.
I would need the insurance to cover the upkeep of payments and not a loan with it. i.e. just insurance because I got a very competitive rate from the company that I'm actually buying from BUT they only offer 12 month insurance.

In the article there are links to insurers who just provide the policy not the loan which I believe is what you want. These are either loan protection or income protection policies in which you can specify the monthly benefit.

The policy length can be longer than 12 months, but the benefit period you can only choose between 3 and 12 months usually.

AntNLuce

Thanks for your help Nick! Much appreciated. :beer: