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