Loan payment protection insurance
What does this loan payment protection insurance do?
Loan payment protection insurance will pay your monthly loan or finance payments for up to 12 months, if you cannot work due to an accident, sickness or unemployment.
Why should I choose this insurance?
- ultra low prices which are up to a tenth of the cost of competitors
- comprehensive cover with limited exclusions
- nil excess period – payments are backdated to the first day of your claim
- 12 months tax free claims payments
- this insurance is a 2007 Moneyfacts 'Best Buy'
Why buy from British Insurance?
- our staff are friendly, well trained and based in the UK
- British Insurance is a multi-award winner
- we are recognised consumer champions and market leaders
- we are regularly recommended on the TV and Radio, including ‘Tonight with Trevor McDonald’ and the ‘Money Programme’
- we are independent and FSA authorised
If you become unemployed, or have an accident or illness which prevents you from working, this loan payment protection insurance will ensure that your loan repayments continue to be paid.
You need to ensure that you are eligible for this loan payment protection insurance and you should be aware of the important exclusions. All of this important information is contained in the policy documents which you should read before you apply.
Explaining loan payment protection insurance
Introduction
The last thing that anyone who has to resort to taking out a loan needs is to incur unnecessary costs, so a new age-related form of loan payment protection insurance from British insurance is great news for young and middle-aged applicants.
Like traditional loan payment protection insurance, it can cover loan repayments for up to 12 months if you are unable to work as a result of illness, injury or involuntary unemployment. It is also easy to arrange and straightforward to understand, disregarding factors such as gender, occupation and smoking habits when calculating premiums.
But the big difference is that traditional loan payment protection insurance also disregards age, but the new age-related cover from British Insurance does not. This means that the age-related format can cost some younger applicants less than half as much as before.
British insurance realise that younger applicants are less likely to go ill than older ones and, if they lose their job, are likely to find a new one more quickly. They are therefore prepared to offer them keener terms to reflect the lower claims risk.
Premiums are determined by the amount of loan payment protection insurance cover selected by the applicant and by their age at the time of taking out the policy. Costs will not subsequently increase just because they get older.
The loan payment protection insurance cover from British insurance will kick in at the claims stage after the applicant has been off work for 30 consecutive days and benefit payments will backdate to day one. Nevertheless, the fact that benefit payments will only continue for a maximum of 12 months is a significant limitation, because health problems can last for many years or even prove permanent.
Those who are concerned by this issue should therefore pay due attention to a product known as ‘income protection insurance’, which does not cover involuntary unemployment but which provides much longer-term health cover.
It is also important to be aware that the age-related loan payment protection insurance from British Insurance contains the same exclusion clauses as standard loan payment protection insurance.
Medical conditions that already exist at the start of the loan payment protection insurance policy (so called ‘pre-existing conditions’) are not covered, although this exclusion is waived if you have not suffered from the condition concerned for two years from the first date on which you became unable to work.
The self-employed are only covered for involuntary unemployment if they actually cease trading, and even employed people are not covered for voluntary redundancy.
Nevertheless, the premiums on the age-related loan payment protection insurance cover from British Insurance can be so inexpensive that those who realise that they are directly affected by such exclusions may still feel they are getting good value.
The age-related loan payment protection insurance product is only offered by British insurance and cannot be bought through loan providers - who are often wildly uncompetitive even for standard loan payment protection insurance.
It is therefore essential to realise that you are under no obligation to buy your loan payment protection insurance from your loan provider, even though it is most unlikely to volunteer this fact. Shopping around the specialist loan payment protection insurance providers such as British Insurance can save you hundreds, or even thousands, of pounds over the course of the loan.
Find out more about loan payment protection insurance
