A taboo subject: payment insurance
- 17TH AUGUST 2007
With the recent bad publicity which has surrounded the payment insurance sector over the last couple of years, many people are thinking of it as a taboo subject. However it isn’t necessarily a bad thing – payment protection insurance can provide a financial lifeline that can literally keep the roof over your head. It is unfair to say the products are the problem, but rather those who sell them are at fault.
The biggest culprits who have given payment insurance a bad name are the high street lenders. High street lenders have very little knowledge when it comes to selling the product and instead only concentrate on selling the product alongside a credit card or loan to reap the benefits of the huge profits it brings in.
This week the Nationwide - whose payment protection insurance cover was one of the most highly priced in the sector - announced that it was withdrawing its payment insurance product. This could well be due to the recent negative publicity the high priced versions of payment insurance have attracted.
Payment insurance itself can be a good thing to have in your corner if you should find yourself unemployed due to an accident, sickness or becoming unemployed. When purchased correctly it can pay out a fixed monthly income for up to 12 months which means you aren’t left struggling to find the money.
You do however have to make sure that you meet the requirements set out in a policy as there are some exclusions which can stop you from claiming on the product.
It is also unfair to “tar” all providers of payment insurance with the same brush. A standalone and ethical payment protection specialist is a breed apart from the high street lender and one such company is British Insurance.
Considered to be the “good-guys” in the payment insurance sector, British Insurance offers payment insurance policies that can save you up to 80% when compared to the high street lenders.
