Loan Insurance

bilbob_2

Hi all,
I've lurked for a while here, and found dome VERY useful and helpful information, so thanks to the community here for that!
I have a problem though. I am about to apply for an Egg loan, and thanks to info I have gained from here, I've realised that load insurance is a lot cheaper from a 3rd party. My problem is this:
On the loan amount I want (15k) the redundancy protection works out at nearly £50 a month. I have found that I can get it from a number of places for about £22 a month. I have also found an 'income protection' that will provide me with £800 per month income (enough for my mortgage and loan) for £32 a month, but with a 120 day wait for cover to be active...

Does anyone know of any better deals, or are there any hidden catches I should be aware of with these deals? I'm wary, as they are so much cheaper than the standard Egg option.

Any help or advice very gratefully received. I hope to finish the egg application today, so anything is helpful!
Thanks,

Dave

phil-99

I have a loan with Egg which I have had for a fair while now and reading through this site I've only recently discovered the joys of buying loan insurance elsewhere.

I don't have my paperwork to hand - can anyone advise if it's worthwhile cancelling my loan insurance from Egg, and looking at buying it seperately? I guess there'll be some cancellation charges for doing it, and it comes down to whether it's cheaper to chop and change, and be charged - or to stay.

savvy

Hi, I have merged your two threads together as they are of a very similar nature, and now with this bump hopefully somebody will be able to help you both out.
Good luck
savvy

jonesMUFCforever

phil-99 wrote:

I have a loan with Egg which I have had for a fair while now and reading through this site I've only recently discovered the joys of buying loan insurance elsewhere.

I don't have my paperwork to hand - can anyone advise if it's worthwhile cancelling my loan insurance from Egg, and looking at buying it seperately? I guess there'll be some cancellation charges for doing it, and it comes down to whether it's cheaper to chop and change, and be charged - or to stay.

If you have had the loan for a while it will not be possible to cancel the loan protection insurance. This can only be done within the cooling off period. If you want to cancel now you would have to reapply for a new loan (no guarantee of same rates). Not knowing how much the loan is for and the premium charged makes it difficult for us to advise.
You are right in saying that it will cost you a substantial percentage of your original premium if you are in the first 12 months of your loan.
Eric

jonesMUFCforever

bilbob wrote:

Hi all,
I've lurked for a while here, and found dome VERY useful and helpful information, so thanks to the community here for that!
I have a problem though. I am about to apply for an Egg loan, and thanks to info I have gained from here, I've realised that load insurance is a lot cheaper from a 3rd party. My problem is this:
On the loan amount I want (15k) the redundancy protection works out at nearly £50 a month. I have found that I can get it from a number of places for about £22 a month. I have also found an 'income protection' that will provide me with £800 per month income (enough for my mortgage and loan) for £32 a month, but with a 120 day wait for cover to be active...

Does anyone know of any better deals, or are there any hidden catches I should be aware of with these deals? I'm wary, as they are so much cheaper than the standard Egg option.

Any help or advice very gratefully received. I hope to finish the egg application today, so anything is helpful!
Thanks,

Dave

The one advice I would give is ALWAYS READ THE TERMS AND CONDITIONS of the policy and if you do not understand anything ask and get answers in a written format so that you can refer back to if needed during the lifetime of the loan.
Also if you are taking a health policy you MUST tell them about all visits to the doctor for at least the last 6 months however trivial you think they were.
I have heard about a friend who went to the doctor suffering from stress: was prescribed some pills: never went off sick:then broke his leg and tried to claim on his loan policy to be turned down as he had forgotten to mention about his illnesswhen taking out the cover.
Eric

scorpio_biker

Hi,

I had an egg loan and cancelled the insurance after about 7 months, with no problems. I didn't have to take out a new loan. I simply sent them a secure message asking them to remove it and telling them I would make my own arrangments for insurance.

HTH

jonesMUFCforever

scorpio_biker wrote:

Hi,

I had an egg loan and cancelled the insurance after about 7 months, with no problems. I didn't have to take out a new loan. I simply sent them a secure message asking them to remove it and telling them I would make my own arrangments for insurance.

HTH

Did the Insurance premium get added to your loan?If they did and you signed a CCA agreement to that effect they have broken the law. I wonder if this makes the whole debt unenforceable?
Eric