Loan insurance can be a nightmare if it is not purchased correctly
- 8TH AUGUST 2007
Loan insurance is taken out to ensure that if you were to find yourself unable to work through having an accident, becoming sick or being made involuntarily redundant then you wouldn’t have to struggle to find the money to pay your monthly loan repayments.
However as many people who bought their cover from the high street bank or lender have found out, it can be a nightmare when it isn’t purchased correctly. Loan insurance is supposed to be there as a financial safety net and can provide you with a tax free, fixed monthly income for up to 12-24 months, which ensures you have the money each month to meet your loan repayments. However, the cover is more often than not costly from the high street lender and the product has been mis-sold by them.
If you want to sleep easy at night and have the peace of mind it that loan insurance cover can bring then it is essential that you shop around for the cover as Simon Burgess, Managing Director of standalone provider British Insurance is forever warning people.
Loan insurance can work but you have to remember that there are certain conditions within a policy that have to be met and exclusions which can stop you making a claim. It can provide you with financial protection but not all illnesses are covered, so it is essential that you understand the product before buying it and ensure that you can claim on it.
Buying a quality loan insurance product is also essential and British Insurance back up their products by providing the consumer with all the information needed, along with offering advice in plain English. A good quality policy can give you a monthly income to take care of your loan repayments each month and it can pay out for up to 12 months once you have been out of work for 30 days or more.
British Insurance will back date their products to day one which ensures you don’t lose out when claiming as you can claim back to the first day you became unable to work. So if you want to sleep easy then visit them before making your choice on loan insurance.
