Confusion is still around when it comes to loan payment insurance
- 16TH DECEMBER 2007
Confusion has always been one of the many problems that have surrounded the payment protection sector since the investigation began in 2005. When it comes to loan payment insurance and the other payment protection policies, this confusion has led to a drop in confidence in the product and a knock on effect of less policies being sold.
However, it can provide invaluable protection. Loan payment insurance can, when taken out correctly, give an income which means you would not be left struggling where to find the money to carry on meeting your loan repayments. If you should become unable to work after suffering from an accident, illness or through unexpected unemployment, you would struggle to find the money. Loan payment insurance can give you the income with which to repay your loans once you had been out of work for a certain length of time which can vary between providers.
Buying the cover with a standalone provider you can get the cover a lot cheaper, with standalone specialist British Insurance you can save around 80% on the premiums when compared with the high street lender. The policy would then begin to payout from day 31 of being out of work and would run for up to a year but other providers can ask you are out of work for anything up to 90 days – it all depends on the terms and conditions of the cover.
You do have to check the exclusions that can be found in all policies, some of the most common include being in part time work, suffering an ongoing medical condition, being retired or if you are self-employed. There can be others which are set out by the provider so it is important that you check the small print before committing yourself to a loan payment insurance policy as a lack of information is what causes the confusion in payment protection.
