Do you understand a loan payment protection insurance policy?
- 12TH DECEMBER 2007
While the majority of people would say they would never buy anything without first understanding what it was they were handing their money over for, the fact is that many do. When taking out their loan many people take the loan payment protection insurance that is offered alongside the loan from the high street lender. This can almost double the cost of the borrowing and the consumer often knows little about the product they have bought.
While loan payment protection insurance can give you a tax free income with which to continue repaying your loan repayments if you should find yourself out of work after suffering an accident, sickness or unemployment, the cover is not suitable for all circumstances. Common exclusions include being retired, self-employed, in part time work or suffer a pre-existing medical condition.
Providing you have ensured the suitability of a policy it would then give you an income each month once you had been out of work for between 31 and 90 days and would then carry on giving you a tax free income for between 12 and 24 months.
Standalone provider British Insurance only sells payment protection products and as such knows them inside out and passes on this information to the consumer so they are able to make an informed decision regarding the suitability. Buying the cover is easy as all you have to do to get your quote is state your age at the time of taking out the cover and how much of your loan you wish to cover each month.
British Insurance not only makes sure they offer some of the cheapest premiums on a loan payment protection insurance policy which when compared to high street lenders can save you up to 80%. When comparing quotes for the cheapest premiums you also have to remember to compare the exclusions and read the key facts of the policy as these too can differ slightly from provider to provider.
