www.iva.co.uk

Hi, I have been contacted by our IVA company asking if we would like to pay an insurance for our IVA to cover us in the event of sickness, unemployment or redundancy. Im wondering what peoples opinions are of this, have many other people taken it out?, Thanks in advance x

Hi -- some companies advocate this, others don't. Try having a word with John Tegg (Coveritall on the forum) to see how the premiums compare.

Hi, the amount is fixed at 6% of the payment each month so mine would be £9 a month and hubbys £12 a month. Im not sure if this a standard percentage used x

Hmmmm .. I am in two minds over this. I thought about it, but decided against it, bearing in mind that IVA's are supposed to be flexible enough to cope with changes during the term. However, this does seem to depend upon how sympathetic your IP is.

As long as this insurance amount is included in your I & E then why not?

If they want you to take this out of your allowance for other things then think twice about it.

Who knows in a few years time you may be able to make a claim against it for miss sold IVA insurance (for the good of your creditors OFC)

IVA insurance???

First I`ve ever heard of it.
I thought all of your available earnings after outgoings were supposed to go into your IVA pot, and 6% of my IVA payment would be over 50 quid, I couldn`t guarantee to find that each month.

It's been around for a while - my own company do it although I've never bothered.

I have no problem with the concept of IVA insurance, but creditors seem to unfortunatelty, and it is often removed as an expenditure allowance at the original creditors meetings. If any of my clients wish to take out a policy, and fund that from their own savings or allowances, I would not stop them - my only view is that it is actually quite rare for an IVA to fail due to accident, sickness or unemployment - as there are plenty of other methods of dealing with this on a temporary basis.

Do remember that the insurance will only cover your IVA payments, and not any of the other essential household bills.

At the end of the day if you are sick or made redundant the priority of paying mortgage or rent etc will be greater than paying for the iva.

Dont think its worth it myself.

Paul