Protect your loan with loan protection insurance from a standalone provider
- 14TH DECEMBER 2007
Loan protection insurance taken out from a standalone provider such as British Insurance can help you if you should come out of work after becoming sick, having an accident or if you should become unemployed by such as unexpected redundancy.
Loan protection insurance does have to be given some serious thought as it is not suitable for all circumstances and there are exclusions which could mean it would not be suitable. If you work part time, are self-employed, of retirement age or suffer an illness which is ongoing then the product would not be suitable for your circumstances.
The cover has seen many problems in the past and it has been known to often be very costly but a policy can be bought cheaply if you shop with a standalone provider as opposed to the high street lender. Cover is often pushed at the time of taking out borrowing with the high street lender and this can add literally hundreds of pounds more onto the cost of the borrowing than it needs to. Ethical British Insurance offer quality products which can save you up to 80% on the quotes offered by the high street lender.
Once you have determined the suitability using the advice and information that British Insurance gives you then the cover would begin to give a tax free income from day 31 of being out of work and would then continue for 12 months if needed before expiring. Some providers ask that you are out of work for anything up to 90 days before pay out commences and then can continue for up to 24 months so check the key facts before taking out the cover. You can protect your loan and ease the worry of where you would get the money each month to carry on meeting your loan repayments but you do have to understand loan protection insurance and ensure that you would be eligible to claim.
