Make sure your loan cover works in the way it’s intended to do
- 14TH SEPTEMBER 2007
If you want to ensure that your loan cover works the way that it was intended to do then you have to ensure that you would be eligible to claim against a policy if you should need to. When it comes to finding the information you need in order to make this decision you have to read the small print and be aware of the exclusions which are in all policies of this type.
When taken out correctly loan cover will protect against the financial ramifications of becoming out of work due to long term sickness, accident and unforeseen unemployment and will usually start to pay out after you have been out of work for around 30 days or more. It will continue to provide you with a tax free income for up to 12 months, and with some providers, cover runs for up to 24 months.
Loan cover will only work in the way it’s supposed to do if it is right for your circumstances, for example if you are self employed, retired, suffer from a pre-existing medical condition or only work part time then you would not be eligible to claim. This easiest way to get the information is to go to a standalone specialist for your quotes for the cover and one such ethical specialist is British Insurance. They only sell payment protection insurance policies and consequently know the products they sell inside out.
An independent provider like this will not only offer you the cheapest premiums for loan cover but they also back up their premiums with honest and accessible advice. The high street lender misleads the consumer and there is often no mention of the exclusions at the time of purchasing the policy. Simon Burgess, Managing Director of British Insurance, warns the consumer to stay clear of purchasing loan cover from the high street lender: “…unless you want to get ripped off by the extortionate premiums that they quote for the cover.”
