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djman
| 15-06-2007 10:44 AM |
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Joined: 15 Jun 2007 Posts: 1 | I have read some bad comments about payment protection insurance. I have spoken a loan company which say that I would be placing myself at risk if I don't take out ppi. Is ppi peace of mind or piece of cr*p. DJ |
| paladin | 15-06-2007 12:07 PM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | djman Mmm. I have always steered well clear of PPI. PPI is a very popular product to sell. The reason for this is that they offer good commission and are very profitable. Why is this, because they don't payout as often as you think or are lead to believe. Another problem about PPI is that it only covers one loan. The cover, typically, only extends to one year of unemployment which has resulted in you being made redundant, which will be checked. PPI insurance will not payout if you have left your job or self-employed. What you also have to remember is that PPI insurance premiums are heaped on top of your loan, which means you will be paying interest on it. So what you have to do is to estimate the likely-hood of you being out of work for a year and compare this to the cost of taking out PPI. hope this helps paladin |
| DW George | 15-06-2007 12:33 PM |
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Joined: 01 May 2007 Posts: 174 My Profile | Good post paladin. I would like to add that if you think that you would benefit from this type of protection then I would suggest taking out an income protection policy independently of the loan company. You will save a lot of money and you will not be paying interest on your premiums!! Shop about and perhaps speak to a IFA. George |
| mallorca | 19-06-2007 09:38 AM |
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Joined: 28 May 2007 Posts: 17 My Profile | Morning all, just thought i would add my pennys worth of information on PPI. Great product for the sales man bad product for the punter, you could not belive how much money my firm through ppi, we would make around 8-10% on the loan amount and then another 10-15% on top if we sold ppi. So think for a minute where does that 10-15% come from, you the punter. Salesmen will tell you are at risk if you dont take it also one one the lines that i loved to use was that if you do take ppi i can get you a much better interst rate it always worked. If you want ppiu get it but do not buy it with the loan, get ppi that cover 150% of your income it is worth paying for it but it of the net and please please please please read t5he T&C 99.99% of people never read the T&C and the get caught out. If you are taking a big loan say 50k then make sure you have soem sort of cover also if you are married make sure you have life cover, so many times i had clients call me up when husband had died and they where left with a 50k loan and no way to pay it. Good luck. |
