Loan protection insurance: shop around and get quotes from standalone providers
- 8TH OCTOBER 2007
If you want loan protection insurance to work as it is designed to work and you don’t want to pay over the odds for the cover then you have to shop around and get several quotes from standalone providers. A standalone provider will always offer the cheapest premiums for the cover along with giving you the advice that you need to ensure that the policy would be suitable for your needs; the cover can vary greatly from provider to provider with the dearest quotes being given from the high street lender and the cheapest with the specialist provider.
One such specialist provider is ethical British Insurance; they offer loan protection insurance which can save you around 80% on a policy when compared with the high street lender. A policy from British Insurance would start to payout after you had continually been out of work due to having an accident, suffering sickness or from being unemployed for 30 days and would then continue to provide you with a tax free income for up to 12 months. Providers do vary and you can expect to wait before you make a claim for up to 90 days and cover can last for up to 24 months with some providers.
Simon Burgess Managing Director of British Insurance is always telling the consumer that you have to shop around and get quotes from independent providers for loan protection insurance and to avoid taking the cover that is offered by the high street lender at the time of taking the loan. Taking cover with the high street lender is dearer and risky because they often offer very little information regarding the policy’s exclusions of which the main ones include being retired, only working in part time employment or if you have a pre-existing medical condition at the time of taking out the policy.
The standalone provider is historically more ethical than the high street lender and as such will ensure that the consumer has access to the vital information that you need to ensure the product is suitable for your circumstances. Loan protection insurance can work but only if you have read the small print and know it is suitable for your circumstances and this fact has to be determined before you buy the product.
