A loan payment protection insurance plan could ease financial difficulties
- 11TH DECEMBER 2007
If you have loans or credit cards and were to find yourself out of work after suffering from an accident, an illness or should become unemployed through no fault of your own then you could find yourself in severe financial difficulties which could lead to debt problems.
Losing your income for any length of time would leave you struggling to find the money to carry on repaying your loans each month unless you had considered a loan payment protection insurance plan and made sure that it was suitable for your circumstances. There are exclusions in all policies which can stop a policy being suitable and some of the most common include being in part time employment, suffering an ongoing illness, if you are retired or self-employed. There can be others stipulated by providers and you have to compare these when you get quotes.
It is the exclusions which were at the root of the mis-selling of payment protection when an investigation began in 2005. The Financial Services Authority (FSA) handed out fines to several major high street names and set out rules for changing the way products were sold. However in 2007 over 4,000 cases have been investigated which are double those of last year.
Taking out a loan payment protection insurance plan with standalone payment protection insurance specialist British Insurance can save you up to 80% and you receive the information needed to make sure you are eligible for the cover. Cover would then start to payout once you had been out of work for 30 days and would continue for 12 months but some providers ask you to wait up to 90 days, so always check the small print and key facts of a policy before buying as they can differ along with the cost of the cover.
