Insurance vs loan

Legacy_user

Hi everyone

I was wondering if its cheaper to insure things like boiler, contents, appliances, etc is cheaper than simply taking out a loan when necessary to pay for these things?

It occurred to me that insurance almost functions like credit - money is available when needed and the premiums are like repayments & interest on that, so basically with insurance you're spreading out the payments moreso whereas you wouldn't be doing so as much with a loan or credit card

Both loans and insurance make profit for banks, it'd be interesting to know which is more profitable for them, and what sort of interest rate insurance compares to, there is more tax on insurance I believe, which helps the loan side, but insurers invest your premiums which might mean they can do more with your money?

agrinnall

Before anybody wastes their time on a sensible reply I strongly recommend looking at the OPs recent threads.

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