A loan payment protection insurance policy bought from a standalone provider is cheaper
- 10TH SEPTEMBER 2007
The terms and conditions and the price of a loan payment protection insurance policy varies depending on where you choose to purchase it. And yes you do have a choice when it comes to how you take the protection out. The majority of high street lenders will try and push the cover onto you at the time you take out the loan and while this might be the easiest option, it is the dearest one. A loan payment protection insurance policy bought from a standalone provider is always the cheapest way and safest to buy your policy.
A loan payment protection insurance policy is one from a family of payment protection policies that is taken out to safeguard against the possibility that you might through accident, sickness or redundancy, lose your income and struggle to pay your loan repayments.
A good policy that suits your needs and circumstances will begin to pay out after you have been out of work, usually for 30 days or more and will be backdated to day one to ensure that you don’t lose out. The policy would continue to provide you with a fixed tax free monthly income for up to 12 months and in some cases for up to 24.
It is essential that you not only look for the cheapest premiums when shopping around but also for information related to the loan payment protection insurance policy. A lack of information is what has caused wide spread mis selling of payment protection and which sparked a huge investigation into the sector by the Financial Services Authority (FSA). The FSA consequently fined many high street names for mis selling and referred the sector to the Competition Commission which is an independent body who regulate major regulated industries and will complete their in depth investigation into the sector by February 2009.
One expert in financial products is British Insurance, they only sell payment protection policies and as such can give you all the essential information that you need in order to make an informed decision regarding the policies exclusions and key facts. A loan payment protection insurance policy can be a safety net on which to fall if you lose your income but it has to be bought correctly.
