For cheap loan protection shop around
- 4TH SEPTEMBER 2007
When it comes to taking out protection for your loan then it can become very expensive and if you take it alongside your loan with the high street lender then it can add thousands onto the cost of the loan which boosts up the loan cost and also destroys the low interest rate you might have got. If you choose to shop around for the protection you can get cheap loan protection and make huge savings if you go with a standalone provider.
Cheap loan protection insurance is taken out to safeguard against the fact that you might come out of work due to accident, sickness or unemployment. Providing you have done your homework and a policy is suitable for your needs then it would give you a tax free income with which to meet your monthly loan repayments.
A good policy will pay out after you have been out of work typically for 30 days or more and will continue to pay out for up to 12 months, and with some providers, up to 24 months. If you shop online with a specialist payment protection provider such as British Insurance then you can save up to 80% on a loan payment protection policy, while making the process of buying simple and easy.
However not all policies are bought as easily and some websites who sell cover alongside loans have been known to use pre-ticked boxes when selling loan payment protection. This has led to many consumers not even being aware that the cover was included, however after intervention by the Financial Services Authority, many have now agreed to change the way that the protection is sold.
This is just one of the many problems that have surrounded the payment protection sector, it is known to be high priced when bought from the high street lender with the high street lender monopolising the sector and even leading the consumer to believe the cover has to be taken alongside their loan. The loan doesn’t depend on taking the cover and you can choose to go to a specialist provider such as British Insurance for your quote.
In fact Simon Burgess, Managing Director of British Insurance, warns consumers that it is essential to shop around for cheap loan protection insurance and “to get several quotes in order to get the cheapest premiums. Loan protection can give you peace of mind for a fair price, but you do have to go independently for it”.
