A loan protection policy can help keep your head above water
- 8TH NOVEMBER 2007
A loan protection policy can provide you with a tax free income which can help you to keep your head above water if you should come out of work after suffering from an accident, through sickness or through unemployment which is caused by no fault of your own.
Cover would begin once you had been out of work for so many days and this varies between providers, ethical specialist British Insurance will start to provide you with an income from the 31st day of being out of work and then carries on paying out if you should continue to be out of work for up to 12 months. It can be as long as 90 days with some providers before payout and could continue for up to 24 months so you have to check the terms and conditions of the policy before taking it out.
The money can give security and of course ease the worry of where you would find the money each month to continue paying your loan or credit card repayments which means you can concentrate on recovering and getting back to work without the added stress. Getting behind on your loan or credit card repayments means that you would gain a bad credit rating along with other problems and this can take years to repair if ever and of course will affect your chances of getting credit in the future.
You do have to ensure that a loan protection policy would be suitable for your circumstances because there are many reasons which could stop you from making a claim. There are some exclusions which are common to all policies and some that providers put in so always read the terms and conditions, common reasons include being retired, self-employed, suffering from a pre-existing medical condition or only being in part time work.
Getting advice and information regarding what a loan protection policy can and cannot do is essential and only a specialist provider will ensure that you have access to the key facts and will word them in plain English so they are easy to understand. One such specialist is British Insurance who not only makes this information accessible but also offers some of the cheapest premiums to be found which can save you as much as 80% when compared with the high street lender.
