Is loan payment protection just a big con?
- 11TH SEPTEMBER 2007
If you were sold a policy without being told about the exclusions that all loan payment protection policies have or were led to believe that the cover had to be taken out alongside the loan from the high street lender then loan payment protection could well be considered just a big con.
However if you were told that the cover was available from a variety of sources and that you should consider taking out a plan plus were given the information about the exclusions and key facts were explained to you, then loan payment protection would give you great peace of mind if you should be unable to work due to suffering an accident, sickness or unemployment.
The high street lender will try to coerce you into believing that you have to take the loan payment protection from them as this is their way of boosting the profits they have lost by giving you cheap interest rates on your loan. Taking cover from them this way can add hundreds onto the total cost of the cheap loan making it not such a good deal after all. Going with a standalone and specialist payment protection provider you can make huge savings while still getting the peace of mind that your loan repayments are covered.
Loan payment protection insurance is taken to ensure that if you have repayments to make on a loan and became unable to work you would still receive a tax free sum of money each month to carry on making the loan repayments. Policies can be taken to suit your circumstances, for example to cover accident and sickness only, unemployment only or for all three and is sometimes called ASU insurance.
Loan payment protection insurance isn’t suitable for everyone due to the exclusions in the small print and the high street lender is lack in telling you this, however by going with an ethical and specialist in payment protection such as British Insurance you will be made aware of this before purchasing your policy. Some of the most common reasons why a policy wouldn’t be suitable for your needs include being self employed, retired, only in part time employment or if you suffer from a pre existing medical condition at the time of taking out the policy.
