Protect Your Loan Repayments With Loan Cover In Case You Should Lose You Income

Protect Your Loan Repayments With Loan Cover in​ Case you​ Should Lose you​ Income
As no one knows what’s around the​ corner,​ if​ you​ have monthly loan repayments to​ meet you​ should give some serious consideration to​ how you​ would continue to​ repay them if​ you​ were to​ find yourself out of​ work through suffering an​ illness,​ accident or​ if​ you​ should find yourself unemployed by such as​ redundancy .​
Loan cover can give you​ great peace of​ mind but it​ can only do the​ job it’s intended to​ do if​ it​ is​ suitable for your circumstances .​
Loan cover can give you​ a​ monthly income which you​ can then use to​ continue meeting your loan repayments if​ you​ should lose your income through being out of​ work for any length of​ time .​
The tax free income that a​ policy can bring would start between the​ 31st day and the​ 90th day of​ being out of​ work depending on​ the​ individual provider and would then continue for between 12 and 24 months .​
However you​ do have to​ be aware that there are certain factors that can stop you​ from making a​ claim and these are listed as​ the​ exclusions in​ a​ policy with some being common to​ all policies .​
If you​ are of​ retirement age,​ self-employed,​ suffer from a​ pre-existing medical condition are only in​ part time work then it​ wouldn’t be in​ your best interest to​ take out a​ policy,​ while these are the​ most common there can be other exclusions as​ policies differ and it​ is​ essential that you​ read the​ key facts and exclusions before buying a​ policy .​
Sticking with a​ specialist standalone provider is​ essential when taking out cover as​ in​ the​ past loan cover has been widely mis-sold,​ namely by well known high street brands .​
This was highlighted in​ 2018 when the​ Office of​ Fair Trading received a​ super complaint from the​ Citizens Advice and subsequently several high street firms were handed out fines by the​ Financial Services Authority .​
The sector was then referred to​ the​ Competition Commission who is​ currently conducting a​ comprehensive review which is​ expected to​ finish in​ February 2009 .​
While some changes for the​ better have been made,​ the​ Financial Services Authorities recently stated that little progress has been made in​ the​ main areas that need changing,​ when it​ comes to​ selling payment protection products some firms are still lacking in​ giving out the​ information needed to​ ensure that a​ policy is​ the​ right product for the​ consumers needs at​ the​ time of​ selling .​
However the​ Financial Services Authority are introducing comparison charts in​ March 2008 and it​ is​ hoped that this will make choosing the​ right policy easier for the​ consumer as​ they can answer a​ series of​ questions relating to​ the​ policy to​ determine its suitability .​
Along with this consumers will be told how much they will pay for the​ cover and what the​ exclusions in​ a​ policy are so that you​ know straight away if​ it​ is​ a​ suitable product,​ for the​ time being the​ best way to​ get all the​ information needed is​ to​ go with a​ specialist standalone provider for your cover along with the​ advice needed.

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