Take out a loan payment protection insurance plan with an ethical specialist
- 5TH NOVEMBER 2007
Where you choose to buy your cover can make a huge difference to how much you pay for the cover and how well you understand the product that you are buying. If you take the cover alongside the loan then you could pay up to 80% more for your loan payment protection insurance plan than had you gone with a specialist standalone provider such as British Insurance.
Knowing what you are buying and how it works is essential if you do not want to be mis-sold the cover and with the Financial Services Authority recently announcing that despite their continuing investigation which started in 2005, this year they are looking into over 4,000 cases of the cover being mis-sold, it is essential you know the product.
Changes have been made for the better with one of them being the way that a loan payment protection insurance plan is sold online. Previously lenders were using pre-ticked boxes to include the cover alongside a loan bought online which led to much confusion, but now many have agreed to change the way the cover is sold this way and are doing away with the boxes.
However clearly much more still needs to be done and it is hoped that with the introduction of comparison tables in March 2008 by the Financial Services Authority, the product will be made more transparent to the consumer, the tables will highlight the exclusions in a loan payment protection insurance plan which include only working part time, being self employed, having a pre-existing medical condition or being of retirement age. Along with this the consumer will be asked a series of questions which can determine which loan payment protection insurance plan is suitable for them and will tell them how much the total amount the cover will cost.
If you want a loan payment protection insurance plan go to a specialist such as the ethical British Insurance for your policy and the advice needed to make sure it is suitable for your needs.
