Loan insurance can protect your loan repayments
- 9TH OCTOBER 2007
If you have loan repayments to keep up with then protecting them from a loss of income could be the answer to your problems if you fear that you might come out of work if you were to suffer an accident, sickness or if you should be made unemployed by such as redundancy.
However while the cover can give great peace of mind it can be an expensive addition to your loan unless you realise that you have the option of shopping around for the cover and buying it independently.
An ethical provider of loan insurance will be able to give you the cover for much cheaper premiums than the high street lender does and along with this will give you the information that you need to make sure that a policy is suitable for your needs.
There are exclusions in all policies that mean that the product isn’t suitable for all individuals and you have to check these out before you buy a policy. Some for the more common exclusions include if you have an illness which has bothered you within the last 2 years, if you are of retirement age, or are only in part time employment.
British Insurance are one such specialist provider in payment protection insurance (PPI) and offer loan insurance which can help you to make savings of around 80% when compared to the high street lender. Providing that loan insurance would be suitable for your circumstances then it would begin to pay you a tax free income once you have been out of work for a period of time which can vary from provider to provider.
British Insurance policies will start to payout once you have been continually out of work for 31 days but with some providers this can be up to 90 days. The majority of policies continue giving you a tax free income for up to 12 months but again with some providers this can be as long as 24 months.
If you don’t want to get behind on your loan repayments and risk getting into debt then loan insurance taken from a standalone specialist can give you peace of mind.
