A loan insurance policy will be more transparent
- 19TH DECEMBER 2007
One of the better changes to be made in the way that payment protection is to be sold online is the introduction of comparison table from early 2008. One of the many problems with loan protection products is the confusion they cause with consumers not being made aware of the exclusions in a policy, how much the cover will cost or even which would be the most suitable type of cover.
Hopefully the comparison tables, which are being introduced by the Financial Services Authority (FSA) will put an end to some of the confusion and enable the consumer to make a more informed decision regarding the suitability of the cover before they buy it. Tables will highlight the common exclusions which mean the products are not suitable for all needs and tell the consumer how much the protection will cost in total. Along with this, from a series of questions, they will be able to determine which type of payment protection insurance is most suitable for their needs.
A loan insurance policy, when taken out correctly with the likes of ethical specialist British Insurance, can give you an income with which to carry on meetng your loan repayments each month if you should come out of work after suffering from an accident, sickness or through unemployment. Cover can start from the 31st to the 90th day and for up to between 12 and 24 months depending on the provider.
Until the tables appear the only way to get the vital information needed is by relying on the provider and not all make you aware of them. Luckily British Insurance do as they are ethical. By buying a loan insurance policy from them you not only get the key facts of the policy in plain English but also save up to 80% on loan cover when compared with taking it out alongside the borrowing with the high street lender.
