Payment protection on a DMP payment?

[scaredycat]

We are about to start a DMP with Payplan and have to decide whether we take out their payment protection insurance - "Cover my Payments". This has been well explained to us - and there is no hard sell - but we realise - because it will come out of our "surplus" that we have to offer to our creditors - it will add an extra 3 months to our DMP plan (which will be for 3 years and 8 months )

We are 99% convinced already that in this particular climate no job is secure and that we should go for it , but wonder whether anyone out there has any other slant on the situation.

Thanks in advance for any views.

[kallis3]

I don't know of anyone personally who has taken this out, but if you think your income may be in jeopardy during this time then it would seem to be a good idea to take it out.

You could also consider other firms. There is an expert who posts on here under the name Coveritall, you can find his details under the expert link on the left hand side of the page and have a look at his products.

[scaredycat]

Hopefully both our incomes will be fine - but there are so many tales of people losing their jobs that no jobs are totally secure , hence the query.

[kallis3]

If it will give you peace of mind, then go for it. I think a lot of IP's are quite happy for their clients to take out this sort of insurance.

[MelanieGiles]

It sounds like a good idea to me - but don't forget if you do lose your job there will be more important things to think about covering, other than your debt repayments, and this insurance policy will not put food on the table or petrol in the car.

[plasticdaft]

As Mel says,if you lose your jobs how will you pay for everything else??

Never really sure if these things are worth it,but then again its for your peace of mind and not mine.

Paul

[mickyboy]

Providing you have everything else covered, ie, mortgage etc, then if it gives you peace of mind then do it. Only you can decide if it is of benefit to you. If you do not use it, then you will wonder why have paid it, but if you do require it, then you will feel it the best decision you have made.

[Choice1]

Personally, I think this sort of insurance should be an allowable expense in a DMP/IVA as it is in all parties best interests to have cover in place for any sickness/unemployment periods that could put the plan in jeopardy if no cover was taken out.

[kallis3]

I think some IP's do allow it.

[MelanieGiles]

But unfortunately most of the creditors do not!

[kallis3]

Right - I know you have said in the past that you would allow it.

You'd think they'd be quite happy that someone was willing to protect their payments wouldn't you!

[MelanieGiles]

You would - but sometimes they don't always see the benefit of this sort of thing.

[kallis3]

There's nowt so queer as folk!

[Choice1]

They always seem to see the benefit of it when tagging it on to their mortgages and loans at vastly inflated premiums though

[ivas4us]

very true there all push push push then but I think this sums it up they dont practice what they preach.