Consider loan protection insurance carefully
- 11TH SEPTEMBER 2007
If you want loan protection insurance to do the job it was designed to do then you have to give it some very careful consideration before jumping in with both feet. When chosen carefully and the product is explained to you, then it provides invaluable protection that ensures that you still have money to meet your monthly loan repayments.
The best way to purchase the insurance is to learn everything you can about what a policy is capable of and what it isn’t. There are certain requirements that are outlined in a policy and these are named as the exclusions in the policy’s terms and conditions, if any of them apply to you then this probably means that a policy wouldn’t be suitable for you.
Standalone providers such as British Insurance are more ethical than the high street lender and will make sure that you have the information that is needed when it comes to the exclusions and key facts in a loan protection insurance policy.
Information is essential when it comes to deciding if a policy is suitable and the lack of it led to many high street names mis selling policies which were highlighted after investigations by the Financial Services Authority (FSA) and the Office of Fair Trading (OFT). The FSA Subsequently fined many well known names on the high street and the OFT referred the sector for an in depth review to the Competition Commission who hope to have their review completed by early 2009.
When bought correctly a good loan protection insurance policy will begin to pay out after you have been out of work, usually for 30 days or more and will be back dated to day one, it will continue to give you a tax free income each month so that you don’t have to worry about finding the money for your loan repayments each month. You have to shop around with specialist payment protection providers for the best deals in loan payment protection insurance and to ensure you get the cheapest premiums along with a quality product and honest advice.
