voluntary payment protection-good or bad

cookie1wood · #1 (**permalink**) 10-04-2006, 03:52 PM

I just redid my personal loan and my beneficial and combined them into1 personal loan through my bank and was able to cut a year off my loans as well as lower my monthly payments. However, I do have a question. I was offered voluntary payment protection for a small monthly fee on my loan that is supposed to take care of this payment if for some reason I can't make my payments. I agreed to it today but they do give me 15 days to cancel from today if I decide it's not for me. I took it out because our union contract expires in October and I thought this might be a good idea to have if we would go on strike. Is this a good idea and if so is this a good place to get this insurance or is it better to go from an outside source. The charge for this service is $.209 for single credit disability and $.068 for single credit life and this is cost per $100 on my monthly loan balance. My loan term is for 19 months for 9055.49. Any help and advice is greatly appreciated.

Thank you

Ima saver · #2 (**permalink**) 10-04-2006, 04:02 PM

No, it is a very bad idea and you should cancel right away. They will try and talk you back into it, but be firm and say no. The single credit disability will cost you over $18 a month. That is $342 for something you do not need!!

creditcardfree · #3 (**permalink**) 10-04-2006, 04:05 PM

Cancel it and then save the difference in the old payment and new payment towards an emergency fund. And if you go on strike, can you take a part time job to supplement the lost wages?

Ima saver · #4 (**permalink**) 10-04-2006, 04:21 PM

The other will cost you $6 a month, so you are paying $25 a month for something you will probably never need. Save the $25, you will have $475 at the end of 19 months.

instantinfo4you · #5 (**permalink**) 12-06-2006, 12:14 PM

I agree. This is definitely just something that the credit card companies dreamed up to take more of YOUR hard earned dollars.

vsjhoc · #6 (**permalink**) 12-06-2006, 01:52 PM

I agree w/everyone else that it's not a good investment. Plus I'm willing to bet that you wouldn't get the coverage if you went on strike. It would be one of those many "exceptions."

PRICEPLUS · #7 (**permalink**) 12-06-2006, 04:20 PM

Well, I am joining the chorus of folks wh say cancel it. They are absolutely right!

Hez · #8 (**permalink**) 12-07-2006, 02:21 PM

Definitely cancel it. Payment protection is not worth the price you're paying for it, in my opinion.