insurances for payment to my IVA?

[hoobily]

Hi I haven't posted for a while but I was just wondering if anybody would be able to help me.
I was made redundant last year and now I have a new job and have done for 8 months I wanted to know if there were any insurances for payment to my IVA? Because as this is a relativley new job I wont get such a good redundancy if it happens again.
Any help is apreciated x

[kallis3]

Hi,

Yes there are. If visit Coveritall, they do an insurance policy for your IVA.

[plasticdaft]

Just make sure you know whats covered and what is not,as with all insurance policies there are certain things not covered etc.

[MelanieGiles]

Yes - speak to John Tegg who is an expert poster on this forum in this regard. The insurnance is relatively cheap and certainly something I would recommend - although it will only cover your IVA payments and nothing else.

[Debt47K]

I use John Tegg (Protect IVA) to insure my IVA payments, and having met him and his lovely wife at the Slough Frugal Friends meeting I can't recommend him highly enough.
http://www.protectiva.co.uk/

In my case it’s a tiny £14 a month to guarantee my £315 payment right the way through to month 60 following accident and sickness and a full 12 months payments following redundancy.

At only £14 a month for such good insurance cover - specifically designed for IVA payments, it’s a no brainer!

Cheers for now,

Trevor.

11 payments down, 51 to go. (18% down!)

[kallis3]

Duh! That's who I meant, I just put his forum name down by mistake! Not with it tonight!

[NBNA]

I have visted the website and had a good look.If it could be included in your IVA rather than paid for separately it woud be fantastic.I don't think any creditor will allow that as 'their expense'.

Insurance is aways a good idea.But I think there is something here that looks like Payment protection insurance as in a loan - it pays upto 12 months only(?) ....if you are unemployed, and pays it off fully if you can't work due to illness(great).... wouldn't it be better to go bankrupt if you can't work permanently ....can't work means no income other than state benefits, why even think of paying off the IVA??? Put yourself first.

[Skippy]

Perhaps some people don't want to go BR - it might affect their future employment, or mean they would lose their home. Just because some people are unable to work, it doesn't that they will never work again.

[kallis3]

I can't see why they wouldn't allow it. It's far better that they receive money during your period of unemployment and the IVA continues, than for it to fail right away, especially if you do manage to get another job six months down the line.

Why should you immediately think of going br if you have lost your job? Try and get another one, don't admit defeat straight away.
Some people don't like the idea of bankruptcy, and if they can avoid it, they will.

At least it gives you some breathing space.

[NBNA]

I have done a search on the forum and I believe there was an attempt to get the Insolvency Service to recognise this insurance and almost make it 'recommendation' as one of their guidelines - like having to have insurance if you drive....makes excellent sense.No endorsement so far?

If I request for insurance in my review and reduce my payments it would probably be taken off?

If you can't work due to a medical condition then you cannot work to pay the IVA. It is not the same as temperarily unemployed as such - there is a big distinction.

The big plus is the 60 mths pay out if you can't work...but the 12 months pay out if you are unemployed it needs to be extended or it is another PI like loans.....and that has recieved a bit of stick from the Competition Commission.

[kallis3]

No one was talking about medical conditions, the original post was to do with general unemployment, and I think this insurance is excellent for that. Medical conditions vary, and you may only be off work temporarily, and be able to go back a short time later. If it is permanent, then you will have to fail your IVA and consider BR, but I like to look on the bright side first.

For myself, I don't have to separate my insurances for my I&E, they all go down together, so if I wanted to take out this insurance, I would just add the sum on to my total.

[MelanieGiles]

The taking out of this insurance is very much a personal thing, and at present is not generally supported by creditors as an allowable expense, but this does not stop you taking it out if you can afford the premium from your sundry expenditure allowance.

The main concerns creditors have is that they do not feel that many IVAs fail as a result of redundancy or illness - but given the current economic climate, this may well change as there are a lot of people losing their jobs at the moment.

[NBNA]

K,
The insurance covers both redundancy and medical conditons -causing unemployment so we can't separate the two clauses...If we can have two separate quotes then you are absolutely right and I would vote for it! I would pick 'NOT BEEN ABLE TO WORK DUE TO REDUNDANCY' the quote will be much cheaper.But that option isn't there.So I hope it will be there and I would apply.

Premiums are cheaper as for my Egg card I had redunduncy insurance with them and it was less than half than the full insurance.

[purple]The whole payment insurance thing in Banking is on thin ice, and isn't the cast iron stuff we were lead to believe. Any insurance need to be assessed with due diligency.

[kallis3]

As far as I am concerned, unemployment is unemployment, no matter how it comes about. The end result is the same.

I think we are going to have to agree to disagree on this one.

[CoverItAll]

Apologies in advance for the length of this reply, I have been away for some time, and this series of posts raises a number of issues.

Hoobily
DMS offers two policies. The first is specifically designed to cover IVA payments, and benefits are paid directly to your IP, Redundancy benefits for up to 12 months, Accident or Sickness Benefits for up to 60 months. Reduced premium rates for Forum Members are £4.25 per month for each £100.00 per month of insured benefit. Online quotes and applications are at www.protectiva.co.uk The second is our regular Income Protection cover where all benefits are payable for up to 12 months and the premium rate is £3.75, and this can be reduced to £2.75 if mortgage payments are being covered. Online quotes and applications are at www.paymentcover.co.uk

Plasticdaft
Specimen policy wordings are available on our websites, and we are always happy to telephone Clients to explain policy wordings, exemptions to cover etc. We know what the wordings mean, because we wrote them.

NBNA
The reason most PPI benefits pay out for only 12 months is that the first 12 months benefit payments are tax free.

We did indeed approach the Insolvency Exchange to discuss the merits of PPI cover for IVA payments, and had a meeting with them. They told us that the Creditors’ position was that there was already within Insolvency Legislation a route for people unable to pay their IVA’s through Accident Sickness or Redundancy – it’s called Bankruptcy ! Such a callous attitude should not surprise us when Creditors will fight to defend a minimum Dividend of 40p in the pound, only to sell the debt for much less than that a few days later !

The Competition Commission has heavily criticised the sale of PPI by Lenders, and especially the Sale of Single Premium PPI. In our opinion the only benefit that Single Premium cover offers over regular premium is hugely increased commission to the seller. This often is as much as 70% of the single premium of say £15,000, rather than 25-30% of the regular premium of £30.00 to £40.00.

There are two types of PPI in the marketplace, the outrageously expensive type sold by Lenders, and the much more competitive type like ours that is recommended by IFA’s.

One of the CC’s main recommendations is that it should become illegal for PPI to be sold by the Lender when making the loan. At last ! The PPI industry has been receiving a fairly regular kicking in the Press for a number of years, but I have NEVER seen a single case of PPI sold to cover a mortgage in the prime market where mis-selling has been proven.

Buying Redundancy only cover produces a huge risk of a redundancy claim being terminated by a Sickness lasting as little as one day, such is the pressure on Job Centres to reduce the jobless figures.

One final point, PPI on Credit Cards is one of the more questionable practices in the industry. Thousands of people charge £1,000 to their cards each month, pay a PPI premium of £7.90, and then see their balance cleared by their regular monthly Direct Debit

Kallis3
You are quite right, PPI just buys you time, and just to show another very dubious Lender practice, when three months missed payments to a Mortgage Lender definitely meant the start of repossession proceedings, one major Lender was still selling PPI with benefits not payable until day 91, when repossession proceedings had already been started. For this cover they charged £7.20% - we charge £2.75% for this, and still pay 25% of the premium to the IFA in commission.

After the news of the past few weeks, very few of us have any further illusions about the ethics of the major Banks. PPI is likely yet to be their worst area of exposure. If you were sold a single premium PPI without also being quoted for a regular premium policy and the pros and cons of each being explained to you, in our opinion YOU WERE MISSOLD !