High street lenders use a loan protection policy for profits
- 19TH DECEMBER 2007
A loan protection policy is supposed to be there to give you an income if you were to come out of work after suffering from an accident, illness or if you were to become unemployed. While it can do this when sold correctly, sadly many high street banks and lenders are using the cover as a way to rake in huge profits alongside the loans they sell.
When compared with specialist loan payment protection provider British Insurance, buying cover alongside the loan with the high street lender can cost you up to 80% more in premiums. Along with this some firms are still not giving adequate information at the time of selling this valuable protection with no mention of the exclusions which could mean a policy would not be in your best interests.
Providing you understand a loan protection policy it can give you a tax free income once you have been out of work continually for between 30 and 90 days depending on the provider. It can carry on paying out for anywhere between 12 and 24 months and the money means you would not be left struggling each month to find continue meeting your loan repayments.
You do have to be aware of the exclusions which are found in the small print as some are common to all policies and others depend on the provider. Typical reasons include being in part time employment, if you are retired, suffer an illness which is ongoing or if you are self-employed.
British Insurance gives you the key facts regarding a policy and as they are specialists in payment protection back up their award winning loan protection policy with years of experience and excellent sales techniques which means they should be the first place to look when searching for a loan protection policy.
