Burgesses’ insureyourloan
INSURANCE - 1ST JANUARY 2002
Burgesses’ latest product is a loan payment protection insurance plan that pays the monthly loan amount if the insured is unable to work due to illness, accident or unemployment, for up to 12 months, after a one month deferred period. It also pays a lump sum of the monthly insured sum times the number of months outstanding on the loan, in the event of death or suffering a critical illness.
Maximum lump sum benefit is £25,000 and maximum term is five years or to age 60 if earlier. The plan is underwritten by Compass Underwriting on behalf of certain underwriters at Lloyd’s and Sterling Life Limited.
Premiums are based on cover term and range from £5.50% for up to 12 months up to £8.90% for up to 60 months. Joint life rates are double that.
Comment: Loan payment protection insurance is little more than a license to print money for some lenders and is expensive. This plan offers lower rates and good cover but we were disappointed that details of exclusions or even what illnesses the critical illness element covered, were not included in the brochure.
