Cheap payment protection insurance can provide an income when yours is lost
- 4TH NOVEMBER 2007
Suddenly finding yourself out of work and with a loss of income can be a nightmare if you have loan or credit card repayments to make each month. Suddenly you haven’t the income you are used to and so would struggle where to find money to carry on meeting your loan or credit card repayments each month which brings added worry and stress at a time when it’s not needed. One solution to ease the worry and give security of an income is to take out cheap payment protection insurance. However finding cheap cover can be hard unless you know where to look.
Although you can take out the cover alongside the loan or credit card from the high street lender this can boost up the cost of a cheap interest rate on a loan or credit card considerably. A far better way to secure yourself cheap payment protection insurance is to go online and shop around with specialists in payment protection. Independent payment protection provider British Insurance offers quality policies that can save you as much as 80% when compared to the quotes given by the high street lender and as they are more ethical they will make sure that you are aware of the exclusions that can be hidden in the small print of policy.
Exclusions which mean you might not be eligible to claim include being retired, self-employed, suffering from a pre-existing illness at the time of taking out the policy or if you don’t work full time. If you take the time to study the small print and are given the facts then a cheap payment protection insurance policy could give you a tax free income each month for between 12 and 24 months once you have been out of work for between 31 and 90 days depending on the provider. The quote you are given for the premiums you pay each month are based on the amount you wish to cover each month and your age at the time of taking out the policy, British Insurance makes understanding how much the cover will cost easy so you know exactly how much you will pay.
A lack of information regarding the exclusions and key facts are what led to payment protection policies being mis-sold. In 2005 the Citizens Advice made a super complaint to the Office of Fair Trading and an investigation by the Financial Services Authority (FSA) ensued which resulted in them handing out fines to several high street names.
Still under the watchful eye of the FSA and also being reviewed by the Competition Commission who conduct in-depth inquiries into regulating major regulated industries, the review is set to reach conclusion in February 2009. While the FSA’s investigation has made some changes for the better many firms are still not heeding the warnings and guidelines set out by the FSA and mis-selling is still occurring.
If you want cheap payment protection insurance to work in the way it was designed then it is essential that you understand the product and the exclusions within it and make sure your circumstances wouldn’t prevent you from making a claim. Stick with an ethical specialist provider such as British Insurance for your cover and benefit from some of the lowest premiums available and expert advice backed by years of experience in selling payment protection products.
