Loan payment protection insurance cover clearly explained
- 6TH AUGUST 2007
Loan payment protection insurance cover belongs to a family of insurance policies that are designed to be taken out by those who are in full time work and who wish to safeguard against the possibility that they might, through an accident, illness or unemployment, lose their income.
The range of policies can be confusing to the consumer and this is mainly down to the lack of information concerning the products before they are purchased. While they cover you if you become unable to work, there are many exclusions within a policy that could mean you are unable to claim. This has been one of the main reasons for various investigations into the sector after it was found there was widespread mis-selling of the loan payment protection insurance policies.
Simon Burgess, Managing Director of the ethical and standalone specialist provider British Insurance began asking long ago for loan payment protection insurance cover to be made more open and easier to understand for the consumer. While Simon and team do this through British Insurance by offering clear and concise information, they are one of a rare breed.
When purchased correctly under the right circumstances, the loan payment protection insurance can pay out typically for up to 12-24 months, providing the policyholder with enough income to take care of their monthly loan repayments. However loan payment protection insurance cover isn’t suitable for all and a specialist provider will make you aware of this fact.
The high street lender, Simon warns, should be avoided: “They give very little, if any, information regarding loan payment protection insurance cover and as they aren’t fully trained in how this type of cover works – they are taught more how to give the ‘hard-sell’ - the consumer is often mis-led in to buying a policy that is not right for them. Along with this, you could pay up to as much as 80% more for your policy than had you gone with a standalone provider.”
