Do you understand payment cover?
- 28TH OCTOBER 2007
Depending on where you look for a policy will all depend on how well you understand payment cover. If you know your options and have chosen to shop around for the cheapest cover with the standalone provider then you will have been given access to the exclusions and the key facts and so will know whether or not a policy is suited to your circumstances. However if you took the cover that was offered alongside the loan from the high street lender then you will have gotten very little information regarding your policy.
Payment cover - also known as ASU (Accident, Sickness and Unemployment) insurance - is taken out to protect against the possibility that you might find yourself out of work and struggle to find the income to pay your loan repayments. When taken out with your circumstances in mind then a policy would begin to pay once you had been out of work for a pre-defined period of time which can be anything from the 31st to the 90th day of after the event. Once the policy has kicked in then it would continue to give you an income for up to 12 months and with some providers for up to 24 months, which means that you aren’t risking getting into debt.
The exclusions in a policy are common although they can vary slightly so it is essential that you do read the small print of any policy you are interested in buying. If you are retired, self-employed, only in part time work or suffer from an on going illness then a policy isn’t suitable for your circumstances, however check the small print to be sure.
A specialist provider of payment cover such as British Insurance will give you the key facts and the vital information needed to ensure the policies suitability before you buy and will make sure that they offer you the information in plain English, avoiding all the technical jargon associated with protection insurance. If you understand payment cover and have read the facts and know a policy is suitable for your needs then you can have peace of mind for a fraction of the cost of the high street with the standalone provider.
