Loan Protection Insurance Is Still Worthwhile Considering Despite The Bad Publicity

Loan Protection Insurance Is Still Worthwhile Considering Despite The
Bad Publicity

Loan Protection Insurance is​ Still Worthwhile Considering Despite the​ Bad Publicity
Despite the​ bad publicity surrounding loan protection insurance it​ is​ still worthwhile considering whether a​ policy would be in​ your best interests .​
The cover has come under fire but it​ is​ not the​ actual product that should be the​ cause for concern but rather those who sell it​ with very little experience.
The majority of​ policies that are mis-sold are bought alongside loans at​ the​ time of​ taking out the​ borrowing and high profits have been put ahead of​ the​ consumers’ best interests .​
This is​ not surprising when you​ consider that high street lenders bring in​ profits of​ over £4 billion each year when selling payment protection insurance policies alongside loans and mortgages .​
Cover bought alongside loans often comes with the​ highest premiums and by choosing to​ take out the​ cover independently you​ can make huge savings on​ the​ cover along with getting the​ information needed to​ make an​ informed decision.
It is​ the​ exclusions which have caused the​ majority of​ problems - or​ rather the​ lack of​ knowledge about them at​ the​ time of​ being sold the​ policy .​
Exclusions which are common to​ the​ majority of​ loan insurance policies include being in​ part time employment,​ suffering a​ pre-existing medical condition,​ being of​ retirement age or​ working only part time .​
There can be others set out by the​ provider so it​ is​ essential that when you​ compare quotes for the​ cover you​ also compare the​ exclusions .​
The exclusions can be found in​ the​ small print of​ the​ policy and a​ specialist provider will always offer this information before you​ buy the​ cover.
Providing loan protection insurance is​ suitable for your circumstances then it​ can give you​ a​ tax free income with which to​ pay your monthly loan repayments and so keep out of​ debt .​
If you​ were to​ come out of​ work through suffering an​ accident,​ illness or​ through such as​ unemployment then you​ would still have to​ continue repaying your loan or​ credit card each month .​
Without a​ lifeline you​ could find yourself getting into debt or​ worse.
Cover could begin to​ payout from between the​ 31st and 90th day of​ being continually out of​ work and would then last for between 12 and 24 months depending on​ the​ provider .​
This means that you​ would not be struggling where to​ find the​ money each month and have peace of​ mind until you​ got back on​ your feet and back to​ work.
Sticking with an​ independent specialist provider you​ can be sure that you​ will get the​ information needed to​ be sure that a​ policy would be suitable for your needs .​
Along with this you​ will get the​ cheapest quotes possible for the​ cover which will be based on​ your age at​ the​ time of​ taking out the​ policy and the​ amount your loan repayments are each month .​
Always avoid taking out the​ cover alongside your loan and make sure that you​ check the​ cover has not been included in​ with the​ cost of​ the​ loan or​ credit card as​ some lenders will give you​ a​ quote for the​ loan with loan protection insurance already included.

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