| By choosing to take out loan insurance | | | | again. The cheapest way to get the protection |
| independently you will usually get all the | | | | you need is to go with an independent specialist |
| information needed to decide if would protect you | | | | provider. While some lenders do ask that you |
| in the way it was designed. While there has been | | | | protect your loan repayments, it should not be |
| a lot of bad publicity surrounding payment | | | | dependent on you taking cover at the same time. |
| protection products it is not the actual cover that | | | | You always have the option of choosing to take |
| is at fault. It is the lack of understanding that a | | | | out the cover independently. |
| policy does not suit all which causes problems as | | | | The high cost of loan insurance is just one of the |
| well as the high premiums that many high street | | | | many problems that the Financial Services |
| lenders charge. | | | | Authority and Competition Commission are looking |
| Providing you realise there are exclusions in all loan | | | | into. It is thought that high street lenders are |
| insurance policies and have checked them against | | | | currently bringing in around £4 billion in |
| your circumstances you could have peace of | | | | profits from the sale of cover alongside cheap |
| mind. Some of the most recurrent exclusions | | | | loans. However they are remaining tight lipped, but |
| which can be found include not working full time, | | | | the Competition Commission say they will use |
| being self-employed, suffering a pre-existing | | | | their powers to make the high street lender |
| medical condition or being of retirement age. You | | | | come clean. |
| do have to read the wording of the terms and | | | | There are many factors that have to be |
| conditions because providers can specify others. | | | | considered when buying cover. The premiums are |
| The majority of loan insurance offered by | | | | a concern and of course while you want the |
| specialist providers would begin to give you a tax | | | | cheapest you also need quality cover. The |
| free income from between the 31st and 90th | | | | expensive cover offered by high street lenders is |
| day of being unable to work due to redundancy, | | | | not particularly of better quality because it is |
| illness or accident. Cover would give you a | | | | more costly. In fact cover bought cheaper with |
| monthly lump sum which would mean that you | | | | an independent provider often has many additional |
| are able to continue meeting your monthly loan or | | | | benefits. |
| credit card repayments without a struggle. This | | | | Loan insurance can give peace of mind and it can |
| income allows the policy holder to concentrate on | | | | ease the worry of continuing to meet the |
| getting better and back to work. | | | | commitments of your loan. Taking the free |
| In the majority of cases protection will be offered | | | | advice and reading the key facts supplied with a |
| by the high street lender at the time of | | | | policy that the specialist offers goes a long way |
| borrowing. However, historically, cover taken this | | | | to helping you make an informed choice of |
| way has been known to be expensive. In some | | | | ensuring that your loan repayments will still be |
| cases it has been reported to have boosted up | | | | met if disaster struck . |
| the cost of the amount borrowed by almost half | | | | |