Insurance

[vickir]

Can you get insurance to cover IVA payments in case of redundancy / unemployment / sickness?

[Jo Rolland]

Yes you can, but I couldn't recommend anyone.

You would probably be best in getting purely the income protection insurance for these eventualities rather than specifically to cover your IVA payments but this is my personal opinion only as I am not regulated to give insurance advice

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

[CoverItAll]

Hi vickir

Have a look at our website where you will find Redundancy cover payable for 12 months and Accident or Sickness cover payable for up to 60 months.

If you decide to apply for this, please send us a separate e-mail giving your Forum name, and we will apply our special Forum Member's discount.

John Tegg
www.protectiva.co.uk
0808 180 0099
We will make all your IVA payments for you if Accident or Sickness stops you paying them yourself.

[carlmcmullen]

I would suggest an Income Protector insurance as this covers more than just you IVA payment and is normally the same price.

Best place to sourse this kind of insurance is www.moneysupermarket.com as they are independent and will give you the best price.

Carl

[CoverItAll]

Hi carlmcmullen

It is very important to bear in mind that our policy is FUNDAMENTALLY DIFFERENT TO ALL THESE INCOME PROTECTION PLANS.

All these Income Protection Plans suffer from the same problem - they are not designed to cover IVA payments.

Their cover is guaranteed for 1 month - we guarantee 60.

Their premium costs are guaranteed for 1 month, we guarantee 60.

Their Accident & Sickness Benefits are payable for only 12 months (sometimes 24), ours are payable for up to 60 months.

Their benefits are not always payable BACK TO DAY ONE, ours always are.

Their Insurers can give 90 days notice, cancel the cover, and exit the market, OURS CAN NOT.

You might think that this is not much of a probnlem, but remember we saw this happen only a few years ago with Matrks and Spencer Financial Services, and when it does, everything for which you have already claimed, must be declared to your new Insurer, and they will almost certainly exclude cover for these as Pre-Existing Conditions.

If you have any doubts, seek advice from an Independent Financial Adviser. They can compare even the minute differences between policy wordings.

We always recommend people seek professional advice and don't try DIY financial planning.

John Tegg
www.protectiva.co.uk
0808 180 0099
We will make all your IVA payments for you if Accident or Sickness stops you paying them yourself.

[carlmcmullen]

Thank John,

I have researched this myself and i totally agree you have to be careful - i have a income protection plan myself becuase you can never be to careful.

But after hours of research i still believe www.moneysupermarket.com to be one of the best as it compares hundreds of sites and enables you to compare all of the different terms that you have mentioned.

I managed to secure myself a payment protection that pays out £1,000 pcm, paid from day one for £22 a month which i think is very competetive.

I was unsure about it at first but when read the T&C's twice it all stacked up.

Before making any decisions vickir check it out - nothing to loose.

Carl

[CoverItAll]

Hi carlmcmullen

I have just looked up the scheme I think you refer to. It is indeed the cheapest premium listed - £22.80 for £,000 per month benefit but DOES NOT COVER THE FIRST 180 DAYS YOU ARE OFF WORK!

You do indeed have a choice. It is excellent value for money, £22.80 covers month 7 to month 18. In comparison our £42.50 covers month 1 to 12 for Redundancy and 1 to 60 for Accident or Sickness.

However, on any claim lasting less than 211 days –

NO PAYMENT AT ALL IS MADE by this scheme.

Are you willing to gamble that your creditors will allow you an IVA payment holiday of 7 months?

Would your IP agree?

Other points to note are that the insurer is Irish – are the FSCS safeguards against their insolvency as generous as in the UK? Also your cover and premium level are guaranteed for only 30 days, not the life of your IVA, and can therefore be changed after you bought the cover.

These are the very reasons that TIX says creditors refuse to allow PPI to come out of IVA payments. Normal PPI policies do not address IVA cover requirements.

As they say – you pays your money, and you takes your choice.




John Tegg
www.protectiva.co.uk
0808 180 0099
We will make all your IVA payments for you if Accident or Sickness stops you paying them yourself.