I have to agree with financestu as he is right, all of his above points ring true as finding a new job after redundency along with many other at the same time can take some time and the recruitment process can be very long, I would also advise that if you feel Payment Protection is needed in your circumstances then at least shop around, it is your right to! At least that way you will be able to see what is the cheaper option, buying the PPI from the loan provider or buying seperate policies from individual companies.

Most loan companies do charge the PPI with the loan at the same APR% so you end up paying way more for the policy than what the original cost stated. 

The common speach heard is "You never know what might happen to you today or tomorrow, you could get hit by a bus"

wether the above would happen is another thing but it is designed to put doubt in your mind 

My advice is to always shop around, never take for granted what the first person/company says to you. 

 

shel:

. Usually much cheaper than PPI, though won't cover you for redundancy in most cases - is this really an issue? How much do you REALLY need your redundancy cover?

Shel

If it isnt really on issue they wouldn't provide cover for it.

In the modern business world you can never be 100% sure your job is secure, it doesnt take much for a company to suddenly decide to cut costs or go out of business - this has even happened to large well known companies as well as the small ones.

 Its not as easy as people think to just get a new job, it often takes time to find suitable vacancies then the recruitment process can carry on - will you really be on the same money?? 

If a big company goes bust there will be a large amount of unemployment in the area and a lot more people going for the jobs - what makes you think you will be more likely to get a job from the next person.

 

This is what redundancy cover protects against - it allows you time to find a suitable job to your skill and a pay that will be suitable and gives you a bit of security and breathing space if it does take time to get a job taking away some of the stress of the situation  

that is the prblem with the single premium policies as you pay for them upfront - where you can it is best to avoid these polices as they will always cast more. If possible get a monthly premium policy with a seperate provider.

 However, its probably best to get seperate policies for life, accident & sickness  and unemployment to ensure that you are getting the best possible policies.

 The problem with monthly polices is that the provider can cancel them whenever they want so could leave you in trouble if you need to claim.

 

 

i got a swift response from my bank re PPI

basically.

if we wanted to cancel our ppi with them we would have to

cancel our current loan ,repay it,and take out a new loan at

a higher apr+ componded interset from day one.

in other words it might cost the individual rather than save.

it is unfortuante that the FSA cannot enforce a ruling where

the PPI provider can be changed during the term of the loan

without affecting the ongoing capital repayment of the loan.

thanks 

 

 

Also, consider taking out Income Protection rather than loan protection - as it pays YOU and not the lender, can be for more than the loan, perhaps half your income, and is based on you being unable to work through illness or disability. Usually much cheaper than PPI, though won't cover you for redundancy in most cases - is this really an issue? How much do you REALLY need your redundancy cover?

Shel

Hi,

 

I would be carefull about cancelling the ppi as it may not make that much difference.

 The policy you have bought is a single premium policy which is added on to your loan and also pay interest on too.

 The new ruling is in relation to "nil refund policies", meaning that all firms must over "partial refunds"

 You will find that your refund will not be a pro rata refund but prbably about 10% of the premium. Your repayments will also only go down by a few £ as you will still be paying the other 90% of the ppi policy and the interest on it. 

Hello
Yes of course you can at any time providing you haven't made a claim. You usualy have to give them 30 days notice in writting, check your policy document under "Cancellation"
Please be aware if you cancel your ppi that some lenders now require you to sign a new loan agreement without the insurance on and in doing so they do another search of your credit file just to anoy you.

with regard to the new ruling re PPI .
i have a personal loan with PPI at present included in my
monthly repayment to my lender
can i choose to cancel the PPI and change to a stand alone
PPI provider of my choosing
many thanks