A loan protection policy can work for you
- 10TH OCTOBER 2007
There has been many problems surrounding loan protection insurance and faith has been somewhat lost in the sector and product but it has to be remembered that it isn’t the product which is at fault but the poor selling techniques of some providers that has been the main cause of mis-selling.
The majority of problems have stemmed with cover bought from high street lenders whereas a loan protection policy bought from a specialist in payment protection insurance (PPI) can and does the work the way it should do, if you follow the advice the specialist gives.
It is all about the small print and exclusions when it comes to deciding if a loan protection policy would be suitable for your needs. There are exclusions which could stop you from claiming and depending on where you buy the cover it can almost double the cost of a so-called cheap loan.
Payment protection insurance specialist British Insurance has one of the “good guys” in the sector, Managing Director Simon Burgess speaks openly and from the heart and isn’t afraid to point out that the cover from the high street lender is not only very costly but it is also inferior.
He says: “The latest rounds of investigation by the Financial Services Authority by mystery shoppers has revealed that despite warnings of mis-selling and the need to make the exclusions apparent to consumers, some lenders are still failing to give out the correct and essential information. Now along with fines being handed to firms who continue to sell this way, the Chief Executives themselves will face personal fines. It is about time that these companies and the people who run them start to be penalised for sloppy sales practices”.
Simon and the team at British Insurance don’t fear the intervention of the Financial Services Authority but instead welcome it with open arms. A loan protection policy can work and can give you a tax free income once you have been out of work for 30 days or more but is has to be bought with understanding and British Insurance do everything possible to make the exclusions and key facts known so that the consumer can make an informed decision.
