Go to a specialist for your loan insurance plan
- 5TH OCTOBER 2007
If you want the protection that a loan insurance plan can offer in case you should come out of work due to suffering from an accident, sickness or unemployment then the best place to start looking for the cover is with the standalone provider.
A loan insurance plan can start to pay out a fixed income each month which will cover your loan repayments and help stop you from getting into debt. A policy can begin to pay out once you have been out of work for a set period of time which is defined at the time of taking out the policy and can be anywhere from the 31st day of being out of work or as long as the 90th day.
The loan insurance plan would then continue to give you a tax free income for up to 12 months though some providers pay for up to 24 months. However you do have to ensure that the cover is suitable for your circumstances as there are exclusions and these can include only being in part time employment, retired, or if you have suffered from an illness at the time of taking out the policy.
The exclusions can be found in the policy’s small print and key features. Not understanding the cover is what has led to many problems in the payment protection insurance sector. Historically, a specialist is more ethical than the high street lender and one of the most ethical specialists is British Insurance.
Simon Burgess, Managing Director of British Insurance, urges consumers to shop around for the cheapest premiums and to understand the cover. “Cover can be expensive especially when taken out alongside the loan from the high street lender,” he explains “and the high street lender often rips-off their unwitting customer by charging high premiums for inadequate cover”.
A loan insurance plan can help you to keep your head above water and out of debt but you have to make sure that it is suitable for your circumstances. Take the advice of a specialist and read the small print before buying and you can have peace of mind and security.
