Is loan payment insurance cover the lifeline it’s supposed to be?
- 7TH AUGUST 2007
Loan payment insurance cover is sold as being a financial lifeline in case you should find yourself unable to work after suffering an accident, being ill or becoming involuntarily unemployed. The cover can pay out a fixed, tax-free monthly amount of money which means that you would be able to carry on paying your essential outgoings such as your loan repayments, typically for up to 12 months but with some providers, up to 24 months.
However with the recent revelation that many policies were widely mis-sold, the majority of which were sold by high street banks and lenders, the consumer is now asking if loan payment insurance cover is actually the “lifeline” it is supposed to be.
Loan payment insurance cover can be a valuable asset to have in your corner providing you have researched the product and have gone with an independent specialist provider for your advice and quote. The reason why you should choose an independent specialist is because they provide better quality products while making sure that you get the information you need and give you the cheapest quote for the cover. They are not tied to any one provider so can recommend an unbiased product.
When making a comparison with the high street lender and a standalone specialist such as the ethical British Insurance, British insurance can save you around 80% on loan payment insurance cover. They also provide concise information regarding their products and any policy exclusions. Sadly, as many consumers as found, this does not always happen with the high street banks and lenders.
While it can be an invaluable lifeline, the product isn’t suitable for everyone and it is essential that you read the small print. Note that there are exclusions but British Insurance do not hide this fact, unlike many of the high street providers, which is just another reason why you should buy your loan payment insurance cover independently.
