Loan Protection Insurance A Necessity Or A Rip Off

Loan Protection Insurance - a​ Necessity Or a​ Rip-off?
If you​ have heard some of​ the​ recent reports regarding loan protection insurance industry then you​ could be left asking yourself is​ loan protection insurance a​ necessity or​ is​ it​ nothing but a​ big rip-off?
There have been widespread investigations into the​ payment protection sector with complaints of​ mis-selling of​ the​ cover and price inflated premiums .​
While this is​ true,​ it​ is​ some of​ the​ major companies selling the​ product that are at​ fault not the​ actual policies themselves .​
The biggest problem is​ with the​ high street lenders and banks .​
While they might be fully trained to​ offer loans and credit cards and can you​ a​ great deal on​ these,​ when it​ comes to​ selling the​ protection for them,​ in​ a​ lot of​ cases,​ they tend to​ tell you​ very little and coerce you​ in​ to​ buying their cover without fully explaining it .​
For this reason - and for greed - many consumers have found they weren’t able to​ claim on​ a​ policy due to​ the​ hidden exclusions within the​ policy.
Loan protection can be considered a​ necessity if​ you​ consider the​ fact of​ how you​ would continue to​ make your monthly loan repayments if​ you​ should come out of​ work due to​ an​ accident,​ unemployment or​ sickness .​
Without the​ policy you​ could be struggling and indeed get behind on​ your repayments,​ whereas if​ you​ have the​ cover then after you​ have been out for work for a​ specified period of​ time the​ cover will give you​ an​ income to​ ensure you​ can continue with the​ repayments.
The answer to​ the​ question is​ really all about where you​ choose to​ take the​ cover from .​
If you​ take it​ from the​ high street lenders and banks without first investigating other options,​ then yes you​ could be ripped-off .​
However,​ if​ you​ buy it​ the​ sensible way by researching the​ marketplace first and going with an​ independent provider,​ then it​ should be classed as​ a​ necessity.

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