Is there such a thing as cheap loan cover?
- 4TH DECEMBER 2007
Loan payment protection insurance in the past has earned itself a bad reputation; one of the things it is known for is the extremely high cost of the cover. However there is such a thing as cheap loan cover if you go with a standalone specialist provider for your policy.
The award winning independent payment protection insurance providers, British Insurance, are considered to be the “good-guys” in the payment protection market and not only do they offer cheap loan cover that can save you up to 80% on the cost, but they also give out free advice on the suitability of a policy.
The exclusions in a policy are what have caused the majority of mi-selling; this was brought to light in 2005 when the Financial Services Authority (FSA) began an investigation into the sector. The ongoing investigation revealed that mis-selling was widespread and fines were handed out to several well known high street names in a name and shame action.
While changes for the better have been seen as result of the investigation, many lenders are still falling short of the targets set out to improve the selling of payment protection insurance. One bug bear is that many consumers bought cover that they were ineligible to claim upon, due to the exclusions. There are exclusions in a policy which could mean it would not be suitable for your circumstances with the common being if you are self-employed, suffer an ongoing illness, are retired or if you only work part time. These are just the most common and policies can have others so you really need to read the small print before buying, British Insurance lays this information out for you so you can make an educated decision.
Cheap loan cover could give you a tax free income so that you can continue to pay your loan repayments if you should come out of work through sickness, accident or unemployment, but you do need to ensure that you would be eligible to claim.
