Loan protection insurance cover can be a rip off if not bought correctly
- 12TH SEPTEMBER 2007
When it comes to buying such an important product as loan protection insurance cover then where to buy it has to be given some serious consideration. If not bought correctly and with your circumstances in mind, then you could find yourself being unable to claim in your time of need.
Providing you have bought loan protection insurance cover or ASU insurance as it is also called, correctly it will give you a tax free income every month for 12 months and with some providers for 24 months which makes sure that you do not get behind on your loan repayments and nor get into debt. The cover would usually kick in after a month of being out of work and the majority of standalone providers such as the ethical standalone payment protection insurance provider British Insurance will back date the policy to the first day you came out of work.
Loan protection insurance cover earned itself a bad reputation as Simon Burgess British Insurance has explained due to the fact that the high street lender does nothing but “rip-off the consumer by charging extortionate premiums for the cover which makes them huge profits..they also do not ensure that the consumer gets the information needed to make an informed decision regarding the policy’s suitability.
“You have to understand that there are reasons why a policy wouldn’t be in your best interests and this information is usually in the small print of a policy and listed under the exclusions”.
Common exclusions include being self employed, only in part time employment, retired or suffering from a pre-existing medical problem at the time of taking out the policy and it is essential that these are outlined and understand before purchasing the cover.
Loan protection insurance cover can be a rip off when not bought correctly but when purchased from an ethical standalone payment protection specialist it can be the safety net it was designed to be.
