Monday, July 23, 2007

Loan Insurance Can Be A Valuable Safety Net

by: Simon Burgess


Loan insurance can be a valuable lifeline if the worst thing should

happen and you are unable to work due to involuntary unemployment, an

accident or prolonged sickness. A policy will cover you for a specific

amount of money and for a period of time, usually around 12 months,

sometimes up to 24 months, which means that you would be able to

continue to met the monthly repayments on a loan, credit card or other

borrowing. However it can only be a valuable lifeline if you have

purchased the policy correctly.

Policies have exclusions within them and these are usually hidden in

the small print, so unless you specifically read the small print, they

can go unnoticed. This could mean that if you try to claim for

something that is excluded, then you simply won’t get paid and will

have wasted the premiums as well as have the financial worry of how to

cope. Unfortunately the majority of people buy a policy alongside their

loan or credit card from their and do not bother to read the small

print, believing that they have bought a policy they are eligible to

claim on.

In order to get the right policy for you, then it is essential that you

shop around go with an independent specialist provider who knows the

ins and outs of the sector and so can give you the benefit of their

knowledge. Along with this, the standalone provider is able to offer

you the cheapest premiums on a policy and this usually can make a huge

difference compared to the price quoted by the high street lender.

With finances often being stretched to the limit – after all, this is

why you take on a loan in the first place - then it is of course wise

to get the essential cover for the cheapest premium possible. The high

street banks have been well known for charging premiums that are way

above the odds in favour of making huge profits, even if this means

giving the consumer poor advice when it comes to their policy. So loan

insurance can be a valuable lifeline, but only when taken out

correctly, so do thoroughly research the marketplace before you buy.


About The Author
Simon Burgess is Managing Director of the award-winning British

Insurance (http://www.britishinsurance.com), a specialist provider of

low cost income payment protection insurance (PPI), mortgage payment

protection insurance (MPPI) and loan payment protection insurance.

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