Take advice when it comes to your loan payment protection insurance plan
- 6TH OCTOBER 2007
When it comes to taking out a loan payment protection insurance plan then you would be wise to take a specialists advice and shop around for the cover independently. Loan payment protection is often sold alongside the loan with the high street lender at the time of taking out the borrowing, but this is in most cases the dearest way of buying a policy and can cost you up to 80% more than had you bought it from a specialist provider.
A standalone, specialist provider of loan payment protection insurance plan is British Insurance; they are one of the most ethical specialists which are backed by Managing Director Simon Burgess. Simon has always been outspoken when it comes to high street lenders. Simon warns that they put huge profits ahead of the consumer’s best interest which led to mis-selling of the cover and giving the product a bad reputation.
When taken out with your circumstances in mind a loan payment protection insurance plan can provide you with an income with which to continue meeting your monthly loan repayments each month once you have been out of work for a defined period of time. With British Insurance the cover would begin to payout from the 31st day of being out of work but this can be as long as the 90th day with some providers. Once a policy has kicked in it would then continue to give you peace of mind for up to 12 months and with some providers for up to 24 months.
It is the exclusions and lack of knowledge which can stop a loan payment protection insurance plan from working and it is essential that the consumer has access to these so that they can make an informed decision. If you shop with an ethical specialist such as British Insurance then you can be sure you will have access to this information. Some of the general exclusions which exist in all policies include being retired, self-employed, suffering from an illness at the time of taking out the policy or only being in part time work.
A loan payment protection insurance plan can work but it is down to you with the help of a specialist to determine if the product is suitable for your circumstances.
