Accident, sickness and unemployment worth the money?
THE DAILY MIRROR - 6TH APRIL 2005
Another common “peace of mine” rip-off is loan protection insurance to meet your payments if you fall sick or lose your job. Industry figures show that 1000 borrowers every HOUR are pushed into signing up for these. And the commission on their sale tots up to £8billion a year.
A typical monthly premium is £20 a month – on top of the interest you’re paying. Even worse, many borrowers find the policy won’t pay out because of existing medical conditions, the self employed and those in less secure jobs are excluded.
If you want cover it is cheaper to buy direct from an insurer. Broker Burgesses charges £11.35 a month for a £5,000 loan, compared to up to £25 charged by a bank.
