Making loan protection insurance more transparent
- 7TH AUGUST 2007
One of the biggest problems regarding loan protection insurance is the lack of information surrounding the policies that are sold. If you take the cover alongside a loan or credit card from the high street lender then, in some cases, information will be non existent.
Loan protection insurance can pay out a fixed sum of money each month for up to 12 months if you should find yourself out of work due to sickness, an accident or through unemployment but you have to know what is and is not covered in a policy.
One person who will continue to campaign for loan protection insurance to be made more transparent to the consumer is Managing Director of ethical standalone payment protection insurance specialists British Insurance, Simon Burgess. Simon works tirelessly on the consumer’s behalf trying to make the product easier to understand.
He says: “It is essential that people understand there are exclusions within a policy that could stop them from being eligible to claim. Sadly, many high street providers are more interested in selling a loan protection insurance policy in order to rake in huge profits, rather than checking out whether or not the customer is eligible to take out a policy.”
British Insurance however do all they can to give the consumer the information that is needed to make a decision before they buy the product, which ensures they get the right cover. Currently the terms and conditions of many loan protection insurance policies are hidden amidst technical jargon that the consumer doesn’t understand. There are many hidden exclusions which could stop you from making a claim.
Currently the majority of loan protection insurance policies that are purchased are sold alongside a loan and this is one of the most expensive ways to purchase the cover and one in which very little information is given.
