Are you one the many confused by loan payment insurance cover?
- 16TH DECEMBER 2007
Loan payment insurance cover has caused much confusion since an investigation began into it in early 2005 and the Financial Services Authority handed out fines to some of the top names in personal finance on the high street. Mistrust set in along with the confusion regarding taking out the cover which meant that many with loans had no protection in case they should become out work.
If you have a loan then loan payment insurance cover can give you an income each month if you were to become unable to work due to an accident, sickness or through unemployment. The tax free income would mean you would not be struggling to find the money each month and would not into debt. It would typically start to payout between one to three months of being out of work. You can receive an income for between 12 and 24 months depending on the provider and with specialist British Insurance payout begins on day 31 and lasts for 12 months.
You do however have to make sure that your circumstances permit you to be eligible to claim as there are common exclusions in a policy such as being retired, self-employed or have a pre-existing illness that would mean the cover is not worth the paper it is written on.
While the Financial Services Authority (FSA) laid out changes that needed to be made recent findings suggest that firms are still not selling cover properly. Those advising about the product are not always making sure the consumer are aware of the exclusions or how much the cover costs which have led to four out of the 50 firms reviewed being investigated further, with another 20 being watched closely.
Clearly there is still confusion and for now sticking with an ethical specialist provider such as British Insurance is the only way to be sure of buying from qualified staff with excellent selling techniques. Along with this you can expect to save up to 80% on loan payment insurance cover which could give you a lifeline and income in your time of financial need.
