Seperate PPI policy??

Tabbykatt

Hi
I have just been doing a little research into taking out a seperate Income PPI, has anyone any experience of these?
Looking at getting PPI on a loan with Tesco (just an example) was £52 per month, and this just covered me for the £295 loan payment. Whereas I could get a seperate policy with another company for £30 per month and this covered me for £1000 per month (to cover income), three times as much for nearly half the cost?
Is this too good to be true?

mrcow

Tabbykatt wrote:

Looking at getting PPI on a loan with Tesco (just an example) was £52 per month, and this just covered me for the £295 loan payment.

My honest opinion is that a lot of these policies are overpriced, as they are bundled in with the loan, so many customers really don't even consider shopping around.

All I can recommend is that you thoroughly check the T&Cs before you agree anything. I personally am not a big fan at all of PPI, but it obviously depends on your situation, and how you would cope if you did temporarily loose your income (or if you honestly think it wouldn't be too much of a problem).

Do check out what terms it will pay out over though, as some policies are better than others. Unfortunately, it means reading lots of small print .

super_mario_4

I used to sell ppi on loans and i can assure you it is overpriced and wouldnt touch it with a barge pole. Ive got a income protection policy with the co-op and for £10 i get £600 till i retire. the reason it is so much cheaper is this. With my income protection policy it is cheap becuase i am a young, healthy man with no medical problems and a non dangerous job. the reason ppi is so expensive is becuase the policy has to cover EVERYBODY. so because this policy has to cover old people/sick people/people in dangerous professions etc and the cost is spread out over everyones policy..hope that makes sense

Tabbykatt

So would you suggest taking out the Income Protection Policy? That was the seperate PPI policy I had found for £30... I will shop around though

super_mario_4

definitely! its cheap as chips and you will get everything covered not just your loan. if your long term sick/unenployed then you will have all your other outgoings to worry about. ppi only takes care of one of them. shop around though! payprotect.com, co-op, britannia are good places to start. i think if you have unenployment cover it is more pricey, but you can get that as stand alone as well