Payment Protection Insurance (PPI) is supposed to cover you in the event of accident, sickness or unemployment for twelve months. If you have no other funds, wouldn’t be covered by work based benefits, and don’t have any other insurance policies that would cover your repayments for a year; then getting a policy may be a sensible move for you.
Let me start by making this as loud as I can….
Get PPI from the loan company and you’ll almost always pay many times more than needed, often wasting £1,000s.
This happens because lenders needn't include the insurance cost in the APR. So often they lower the rates, making the loan look cheaper, and load the cost onto the insurance, which is then pushed as hard as possible.
If you already have PPI on a loan, you may want to take a look at the PPI Reclaiming guide.
Let me start by making this as loud as I can….
Get PPI from the loan company and you’ll almost always pay many times more than needed, often wasting £1,000s.
This happens because lenders needn't include the insurance cost in the APR. So often they lower the rates, making the loan look cheaper, and load the cost onto the insurance, which is then pushed as hard as possible.
If you already have PPI on a loan, you may want to take a look at the PPI Reclaiming guide.