Cheap loan cover is out there you have to look in the right place
- 2ND NOVEMBER 2007
It is possible to find cheap loan cover but you do have to search for it as in most cases, you cannot get it alongside your borrowing at the time of taking out your loan. If you want to make the best savings on your loan cover then you have to go with a standalone provider for the cover.
Cheap loan cover, loan payment protection or ASU insurance as it is also called, can be taken out to ensure that if you should come out of work after suffering from an accident, if you should become sick our become unemployed then you would still have the money each month to continue making your loan repayments without having to worry about how to find it to stop yourself from getting into debt.
All policies will only payout after you have been out of work for so many days which can typically be between 30 and 31 days. Once the loan payment protection insurance policy had commenced then it would continue to provide a lump sum payment for between 12 and 24 months depending on the provider. British Insurance are one of the most ethical specialists in payment protection insurance who can help you to save up to 80% on cheap loan cover while providing a quality product.
The sum you receive would be tax free and would ensure that you wouldn’t fall behind on your loan repayments and get into debt; however there are exclusions which can mean that a policy wouldn’t be in your best interests. Some exclusions are common to all policies while others differ from provider to provider, the most common include if you are only working part time, suffer from a pre-existing medical condition when taking out the policy, are retried or self-employed.
Loan cover has seen many problems since an investigation began into the sector in 2005 after the Citizens Advice made a super complaint to the Office of Fair Trading which revealed that the mis-selling of payment protection insurance had been wide spread. Cover had been sold alongside loans to those who couldn’t possibly hope to claim against the policy such as individuals who were retired or only in part time work.
Poor selling techniques led to the problems and the Financial Services Authority handed out fines to several major names on the high street before the sector was referred to the Competition Commission. They are currently conducting an in-depth review of the sector which is expected to reach conclusion in February 2009.
However, a recent review by the FSA revealed that they are investigation around 4,000 cases of mis-selling this year which means that firms haven’t heeded the warnings that selling techniques have to improve. This is one of the main reasons why you should stick with a specialist such as British Insurance when it comes to getting advice and information regarding a policy.
The Financial Services Authority set out guidelines for the selling of payment protection but it seems that two out of the three haven’t been met. Some changes have been in made but clearly many more need to occur and one big change which is in the pipeline will be seen in March 2008 with the introduction of comparison tables, tables will show the consumer how much the cover will cost in total, make them aware of the exclusions and from a series of questions they answer will be able to determine which type of cover s the most suitable for their needs.
Cheap loan cover is out there and you can get a quality product but you have to shop around and stick with a specialist provider such as British Insurance if you want cheaper premiums and honest free advice.
