Some providers of loan protection cover still being greedy
- 20TH DECEMBER 2007
Although the Financial Services Authority (FSA) have laid down rules and regulations regarding the selling of loan protection cover some providers of the cover are still putting huge profits ahead of the consumers best interests. Some firms are still pushing high priced cover alongside cheap loans to boost up profits while not always ensuring that the protection is right for their customer.
Loan protection cover provides a financial safety net in the form of a monthly lump sum should you become unable to work due to accident, illness or redundancy.
There are exclusions in payment protection insurance policies which could mean that the policyholder would be ineligible to claim. These usually include if you are in part time work, suffer a pre-existing medical condition, are retired, or self-employed. Sadly some of the people that fall under these circumstances have been sold policies and of course have found themselves not being able to claim upon them.
British Insurance are one standalone ethical payment protection insurance company who save consumers up to 80% on loan protection cover while at the same time ensuring that the key facts of a policy are transparent.
Providing cover is suitable and you decide to take it with British Insurance then it would begin to provide a tax freed income from the 31st day of being out of work and would then continue for up to 12 months. Some providers offer policies that continue for 24 months but there can be a three month waiting period, so you have to make sure you read the terms and conditions of the policy as this are where you can find all the details regarding the cover.
Loan protection cover can work the way it was designed to work but you do have to make sure you understand what you are buying and what the cover entails to fully benefit from it
