Understanding cheap loan protection
- 3RD AUGUST 2007
When it comes down to getting cheap loan protection it is difficult enough to find a low cost policy without having to then make sure that you understand the policy wording and any exclusions etc.
Loan payment protection insurance is usually offered alongside a loan or credit card at the time it is taken out, however very little information is given regarding the product at the time of the sale which leaves consumers confused about what is and is not covered.
Loan protection covers a person against losing their income through coming out of work; it can pay out for a period of up to 12-24 months after you have been out of work for 30 days or more. However there are exceptions and you need to know what is and is not included within the policy to ensure that you have adequate financial protection.
Classed as “out of work” means through a prolonged illness, an accident or involuntary unemployment but for example if you have an existing condition at the time the policy is taken out and should come out of work due to this, then you wouldn’t be able to claim unless you could prove you hadn’t suffered from the condition for 2 or more years previously.
In order to ensure that you are getting a good policy and that you understand the conditions outlined in a policy you have to shop around for cover – it is not compulsory to take it from your loan or credit card provider despite what they may say. Shopping around is also essential if you want cheap loan protection.
Loan protection can be expensive when taken alongside a loan or credit card; it will cost you around 80% more than had you gone with an independent and specialist provider such as the ethical British Insurance.
British Insurance are one of the leading providers of quality but cheap loan protection policies and have many years’ experience under their belt which ensures you get the best deal, and advice, possible.
