How loan protection is calculated?

C

cows1000

Guest
hello all.
anyone know how loan protection is calculated?
I got a quote today for a repayment of E581/ mth with life cover,
E542/mth without.
E39/mth seems high to me !(term loan with BOI)
Looking forward to your opinions.
pat
 
Re: protection

I don't think that there's any standard formula because, as with all insurance cover, it is based on the actuarial risk assessed by the company/underwriter in question and different companies may assess risk differently to others. Whatever about how it is calculated you should consider carefully whether or not you really need it as, very often, it is bad value for money and inflated by large charges/commissions.
 
Re: protection

Thanks clubman

decided against protection after all,
.it would work out at nearly %50 of the intrest over the life of the loan.
pat
 
Always so no to this type of insurance. Even in the remote chance that you are someone who will need it, you are unlikely to be able to claim it without a very very big fight.

If you are offered insurance that you are not legally obliged to hold then the default answer is NO. You really need a damn good reason to say yes.

-Rd
 
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