If you want the protection a loan insurance policy can bring ensure you buy from the specialist
- 8TH NOVEMBER 2007
A loan insurance policy can give protection against coming out of work after suffering from an accident, sickness or through unemployment caused by such as redundancy. However the cover can be an expensive addition to what could be an already over stretched budget and it can almost double a cheap loan when taken out with the high street lender alongside the loan.
A loan insurance policy can provide you with an income after a certain length of time which is usually between day 31 and 90 of being out of work and then continues for between 12 and 24 months.
A specialist provider in payment protection such as ethical British Insurance will offer the cheapest quotes for the cover and when compared to the high street lender they can save you up to 80% on the cost of the cover. You do have to make sure that you are eligible to claim against a policy before taking out the cover as while it can be a lifeline, the product is not suitable for all circumstances.
Some exclusions which can usually be found in all payment protection policies include being of retirement age, if you are self-employed, suffering a pre-existing medical condition or if you are only working part time, other exclusions can apply based on the providers so always check the small print before entering into an agreement.
Beware of taking the cover out with the loan or when you take on a credit card as the cost of the cover is extravagant along with very little information being given, many high street lenders were fined in 2005 when the Financial Services Authority began an investigation into the sector and found mis-selling was wide spread. They were found to be selling loan insurance policies alongside their products without making the consumer aware that there were exclusions in the policy and so many were sold cover they could not possibly hope to claim against.
British Insurance on the other hand puts the consumer ahead of huge profits and makes sure that the consumer is aware of the exclusions and that a loan insurance policy would be suitable for their circumstances before they buy.
