Payment cover has to be shopped around for
- 28TH DECEMBER 2007
Payment cover can be taken out alongside a loan or mortgage with the high street lender and indeed the cover is often pushed with the loan for the huge profits it brings in for the high street lenders. High street lenders put the profits ahead of the consumer’s best interest and have been known to mis-sell policies purely for profits.
An investigation began in 2005 into the payment protection sector and fines were handed out by the Financial Services Authority (FSA) to several high street names. Along with fines guidelines were set out for changes to be made when it came to selling policies, but in 2007 over 4,000 policies are still being investigated.
Payment cover is an umbrella term used for mortgage payment protection, loan protection and income protection and all policies have exclusions which can mean they are not suitable for all individuals. However, in some cases the exclusions were not highlighted which led to many consumers buying cover they were not eligible to claim against. Typical examples of reasons which could stop you from making a claim include being in part time employment, suffering from a pre-existing medical condition or being of retirement age.
Payment cover can be a vital safety net if it is suitable for your circumstances, mortgage cover can give you an income to make sure you would still be able to repay mortgage. Loan protection makes sure you do not get behind on your loan repayments and income protection will ensure you have the money each month to continue living your current lifestyle.
Taking out payment cover with specialist payment protection provider British Insurance ensures you not just getting among the cheapest quotes possible but also the information needed to make the right choice. Cover would begin from day 31 and last for 12 months but some providers these terms may vary so do check out the terms and conditions.
