Loan insurance on the rocks?
- 18TH DECEMBER 2007
Faith in loan insurance was lost in 2005 when the Financial Services Authority began handing out fines for mis-selling of payment protection insurance (PPI) products. While some changes for the better have been seen recent findings have revealed that many firms' selling techniques are still not up to scratch.
Faith is not going to be restored when after nearly three years’ some firms are still not selling the protection with the consumer in mind but rather still focusing on the huge profits that are raked in each year by selling costly loan insurance alongside borrowing.
In comparison, ethical loan insurance specialists British Insurance sell loan insurance for up to 80% less than the quotes offered by the high street and along with this they make sure that you are given the advice needed to determine if the product would be suitable. Exclusions exist in all policies with common ones being if you are self-employed, retired, suffer an ongoing illness or only work part time but information regarding these can be hard to find with some providers.
British Insurance gives you the information needed so you can make an informed decision regarding the suitability and a policy would payout once you had been out of work for 31 days and continues for 12 months. You have to check the terms and conditions when shopping around for the loan insurance cover because other providers could ask you be out of work for up to 90 days and can payout for up to 24 months. You also have to check the exclusions because while there are common exclusions providers can add in others and it is the exclusions which cause the majority of mis-selling.
