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

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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