Cheap payment protection can give you peace of mind and security
- 3RD OCTOBER 2007
If you want to have peace of mind and security that if you should come out of work due to suffering from an accident, sickness or through unemployment you would still have the money each month to continue paying your loan repayments then cheap payment protection can give you peace of mind and security.
You do however have to make sure that the product would be suitable for your circumstances as it isn’t suitable for all circumstances and some of the most common reasons which can stop you from being eligible to make a claim include being retired, self-employed, suffering from a pre-existing medical condition or if you are only in part time work.
While payment protection can give you peace of mind it can be an expensive addition to an already over stretched budget but you can get the cover a lot cheaper if you choose to buy the cover independently from a specialist provider. One such provider who specialises in payment protection is British Insurance; they offer payment protection for up to 80% less than the high street lender will quote.
Cheap payment protection will begin to payout once you have been out of work for 30 days with British Insurance but other providers can extend the waiting period to 90 days. Once the cover has started to payout it would continue to give you an income for up to 12 months and with some providers for up to 24 months so get several quotes but always check the small print out. Checking the key facts and exclusions is one thing that Managing Director of British Insurance, Simon Burgess, is always urging the consumer to do and be aware of as this is what causes the majority of mis-selling of policies.
In 2005 the Office of Fair Trading received a super complaint from the Citizens Advice which then resulted in the Financial Services Authority investigating the sector and handing out fines to several high street names for failing to have the consumer’s best interest at heart. The mis-selling ranged from adding the cover onto the cost of the loan without making the consumer aware of how much the total amount of the cover costs and selling a policy to those who couldn’t hope to claim against it.
If you want the protection and peace of mind that cheap payment protection can bring then stick with the specialist
