Payment protection cover is still worthwhile considering
- 29TH OCTOBER 2007
Despite the bad publicity that has given payment protection cover a bad name the protection is still worth taking out as it can give valuable protection if you should find yourself without an income due to becoming unable to work because of suffering from an accident, sickness or if you become unemployed by such as redundancy.
Payment protection cover has been mis-sold in the past and several firms were given fines by the Financial Services Authority after they began investigating following a super complaint by the Citizens Advice to the Office of Fair Trading. While still under the watchful eye of the Financial Services Authority the sector is also in the hands of the Competition Commission and will remain there until February 2009.
The latest investigation into the sector relied on mystery shoppers and the news wasn’t good. Consumers are still not receiving adequate information regarding the product and as such cannot always determine if a policy is suited to their needs.
Specialist in payment protection cover Simon Burgess from British Insurance hopes that the product will be made more transparent and that it will be more clearly explained at the time of buying. British Insurance ensure that they give the information the consumer needs and along with this the cheapest quotes for payment protection cover and good advice to boot.
A policy can begin to payout with British Insurance from the 31st day of being out of work and would then carry on giving you a tax free income so that you can continue to make your loan repayments without stress or worry. The cover providing it would be suitable for your circumstance give you an income for up to 12 months and with some providers for up to 24 months. However there are exclusions and Simon warns consumers that they have to make sure that this wouldn’t stop them from claiming. Typical exclusions are if you are retired, self-employed, only in part time work or if you are ill at the time of taking out a policy.
Payment protection cover can be worthwhile taking but only once you have ensured the product is suitable for your needs and you have shopped around and got several quotes from standalone providers.
