Is a loan payment protection insurance policy right for your circumstances?
- 6TH AUGUST 2007
If you are in full time employment and have financial commitments each month such as loan repayments, then it is worthwhile considering taking out a loan payment protection insurance policy to guard against the possibility that you might become unable to work – and therefore unable to meet your monthly bills – through involuntary redundancy; accident; or, prolonged sickness.
But it is essential that you check out whether or not a loan payment protection insurance policy would be suitable for your circumstances. There are many hidden exclusions within a policy that could mean you wouldn’t be eligible to claim on a policy and, sadly, these aren’t clearly explained by the majority of the mainstream banks and lenders selling policies.
In order to get the best and most reliable information regarding a loan payment protection insurance policy and the exclusions within them, it is worthwhile doing a bit of research yourself and also visiting an independent loan payment protection specialist such as the ethical British Insurance for advice.
A provider who has been around for years will have the experience that is needed and will give the necessary information for you to help you choose for yourself a policy would be right your circumstances. A loan payment protection insurance policy,when purchased correctly, can cover you for up to 12-24 months by providing you with an income so that you can carry on meeting your loan repayments.
Simon Burgess, Managing Director of British Insurance urges consumers to shop around for their loan payment protection insurance policy and to avoid the high street banks and lenders. He says: “The high street providers don’t always have the necessary experience in loan payment protection insurance policy products and, as the media regularly highlights, does not always offer the advice needed to the consumer…they also charge sky high premiums for the cover, which is, quite frankly, a disgrace”.
