The pros and cons of loan protection
- 10TH JULY 2007
If you have taken notice of the Press recently then you will probably be left with the idea that there are more cons than pros when it comes to loan protection. Recent investigations by the Financial Services Authority revealed that there has been widespread mis-selling of loan protection polices along with high premium and the sector is now under review by the Competition Commission.
Another big con when it comes to loan protection is the way that banks con consumers into thinking that the cover has to be taken alongside the loan, that it is compulsory. This is untrue and you can purchase your loan protection cover from an independent and specialist source if you so wish.
However, sold correctly, there are some pros to loan protection. If you take out a loan then you will have to be sure that you can make the repayments each and every month regardless of what would happen in the future.
One of the pros is that when bought correctly loan protection will give you a tax-free sum of money each month to pay your credit repayment commitments should you be out of work for 30 days or more. This gives you peace of mind that should you become ill, suffer an accident or become unemployed, then you won’t be struggling to meet the repayments.
Perhaps the biggest pro is that there is someone out there that does put the consumer first; British Insurance is a standalone and ethical loan protection provider who can help you to make huge savings while providing a quality loan protection product. British Insurance is for the people not against them and can help you to save up to 80% on your premiums.
