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  • FIRST POST
    • GambledLife
    • By GambledLife 3rd Jan 18, 12:23 AM
    • 58Posts
    • 6Thanks
    GambledLife
    Should i take out income protection insurance
    • #1
    • 3rd Jan 18, 12:23 AM
    Should i take out income protection insurance 3rd Jan 18 at 12:23 AM
    I have various credit card and overdraft debts totalling £34600 with no assets.

    Info about my debts can be found here:

    http://forums.moneysavingexpert.com/showthread.php?t=5756372

    It will take me two years one month to pay of my debts sticking to a strict plan, my worrie is if i were to be make unemployed during this time i have no way of making the minimum payments of my 0% cards leading to massive interest of 100s and 100s a month on top of what ill ow in payments.

    I dont see being made unemployed in the next 6 months but with in two years its very possable. Iv had a look round and i can get income protection covering £1602 for £28 a month fee this will only cover for 12 months but it will cover 12 months living expenses and min payments on debts.

    Lets say i am made redundant in 6 months and this will put my debt at arround £27800 (paying off cards im incuring intrest on first) the income protection insurance will cover 12 months of payments assuming i have not found a job that can cover. Which will put then my debt at arround £18464.

    Should i get income protection ?
    Last edited by GambledLife; 03-01-2018 at 12:43 AM.
Page 1
    • Moneyineptitude
    • By Moneyineptitude 3rd Jan 18, 12:28 AM
    • 20,389 Posts
    • 11,299 Thanks
    Moneyineptitude
    • #2
    • 3rd Jan 18, 12:28 AM
    • #2
    • 3rd Jan 18, 12:28 AM
    Seems like an additional expense you can ill-afford to be honest. If you can officially foresee being unemployed in the next two years, then that would likely invalidate any claim on the insurance..
    • GambledLife
    • By GambledLife 3rd Jan 18, 12:33 AM
    • 58 Posts
    • 6 Thanks
    GambledLife
    • #3
    • 3rd Jan 18, 12:33 AM
    • #3
    • 3rd Jan 18, 12:33 AM
    Not officially foresee, there has been no news or talk or hint ect...I say very possable as i have been with the company comming up to 5 years and its changed hands twice, once to another company and the second time back to the orignal owners.

    Both times we were acquired under taupe and there were no redundancys.

    Looking at the policy it does state that i need to hold it for 120 days before it will be valid with no news of pending redundancy and it wont pay if i take voluntary redundancy.

    Whats voluntary redundancy? Say they offer me another job at lower pay or in a diffrent city or make they make me redundant. As i dont drive / potentially cant take lower pay because debts would taking redundancy count as voluntary?
    Last edited by GambledLife; 03-01-2018 at 12:36 AM.
    • sourcrates
    • By sourcrates 3rd Jan 18, 12:38 AM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    • #4
    • 3rd Jan 18, 12:38 AM
    • #4
    • 3rd Jan 18, 12:38 AM
    Hi,

    You only get PPI on certain financial products these days.

    It!!!8217;s income protection insurance you should be looking for.

    https://www.moneysupermarket.com/income-protection/
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • GambledLife
    • By GambledLife 3rd Jan 18, 12:41 AM
    • 58 Posts
    • 6 Thanks
    GambledLife
    • #5
    • 3rd Jan 18, 12:41 AM
    • #5
    • 3rd Jan 18, 12:41 AM
    Sorry i mean income protection insurance
    • sourcrates
    • By sourcrates 3rd Jan 18, 12:47 AM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    • #6
    • 3rd Jan 18, 12:47 AM
    • #6
    • 3rd Jan 18, 12:47 AM
    Sorry i mean income protection insurance
    Originally posted by GambledLife
    To be honest (just read your other thread) I wouldnít bother.

    If you lose your job, go bankrupt instead, as you have no assets, just keep that in mind as a fall back position.

    Until anything does happen job wise, just crack on and donít worry too much about it.

    The premiums for this type of cover can be high, with a lot of get out clauses.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • GambledLife
    • By GambledLife 3rd Jan 18, 12:59 AM
    • 58 Posts
    • 6 Thanks
    GambledLife
    • #7
    • 3rd Jan 18, 12:59 AM
    • #7
    • 3rd Jan 18, 12:59 AM
    Doesn't bankruptcy last 6 years on your credit report? Its not only the debts im worried about i could end up homeless as i rent a room form brother and if made redundant i can't claim housing benefit as family pluss he wouldnt be able to afford bills on his own.

    But on the other hand id be paying arround £700 on the off chance over the two years for the cover pluss i suppose theres reasons when they wont pay.
    • sourcrates
    • By sourcrates 3rd Jan 18, 6:02 PM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    • #8
    • 3rd Jan 18, 6:02 PM
    • #8
    • 3rd Jan 18, 6:02 PM
    Doesn't bankruptcy last 6 years on your credit report? Its not only the debts im worried about i could end up homeless as i rent a room form brother and if made redundant i can't claim housing benefit as family pluss he wouldnt be able to afford bills on his own.

    But on the other hand id be paying arround £700 on the off chance over the two years for the cover pluss i suppose theres reasons when they wont pay.
    Originally posted by GambledLife
    There is usually a timescale they will pay out for, then it stops.

    Depends on what policy you buy but itís usually only for 12 months, that wonít pay off your debts, it will just prolong the enevitable.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • GambledLife
    • By GambledLife 4th Jan 18, 8:07 PM
    • 58 Posts
    • 6 Thanks
    GambledLife
    • #9
    • 4th Jan 18, 8:07 PM
    • #9
    • 4th Jan 18, 8:07 PM
    The time scale was 12 months, im just worried that at any time in two years if i end up unemployed ill be homeless and bankrupt.
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