Loan Cover Can Work If You Understand What You Are Buying

by: Simon Burgess

Providing you take the time to read the terms and conditions that come with a policy then loan cover can be a valuable asset. It is only when the consumer is ignorant of the exclusions and buys cover that has not been explained fully that problems occur. This was seen in 2005 when the Office of Fair Trading received a super complaint from the Citizens’ Advice Bureau. Following this, the Financial Services Authority began investigating and subsequently handed out fines to several firms.

Guidelines were laid down when it came to improving sales techniques and while some firms took heed and have made changes to the way they sell cover, many more are still failing to meet expectations and mis-selling continues. The majority of mis-selling occurs when policies are sold alongside loans at the time of borrowing. High street lenders are thought to bring in around £4 billion in profits from adding cover to loans. Often when the protection is bought this way interest is added onto the loan after loan protection has been included, which means you are paying interest on the actual protection and loan combined and not just the borrowing itself.

For the cheapest quotes for payment protection insurance go to a specialist independent provider. As they are more ethical, the quote given for protection for your loan or credit card will be based on your age when applying and how much your monthly loan repayments are. By choosing to take out loan protection this way you can save as much as 80% when compared to high street lenders’ quotes.

Along with making huge savings on the cover a specialist will also ensure that the consumer has access to the information needed to ensure the suitability of the protection. Policy exclusions stop some people from being eligible to claim, and so checking your circumstances against the exclusions is imperative. Failing to properly explain exclusions is the number one cause of mis-selling.

Popular exclusions include working part time, being self-employed, suffering from an ongoing illness or being of retirement age. While these are listed as exclusions even those who have an illness could still be eligible to take out a policy. Providing the illness has not re-occurred within two years before applying for the cover a policy might be suitable. Those who are self-employed would be eligible to claim if they ceased trading entirely through no fault of their own. With these exclusions and exceptions in mind, you can see why it is essential to go over the terms and conditions with a fine toothcomb.

A specialist is the best way to save and get the information related to all aspects of payment protection, of which loan cover is just one type of product. However, in March consumers will have another tool they can use: comparison tables. Tables will show how much a policy would cost in total, and explain the exclusions that exist in all cover. When it comes to choosing which type of policy would be the most suitable then this will be made more transparent through a series of questions and answers.

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.

Do Not Be Tricked Into Taking Out High-Cost Payment Protection Cover

by: Simon Burgess

Payment protection cover has seen many problems over the last few years which have all had a negative effect on the family of payment protection products. One of the many problems associated with policies has been that they are ‘pushed’ alongside a loan at the time of borrowing. A popular consumer watchdog announced that out of 41 lenders they contacted regarding taking out a loan, 24 of them included payment protection with the quote.

While taking out a payment protection policy in order to cover your loan or credit card payments can work well in the event of being unable to work, you must give a lot of thought to which policy you take out. This means sitting down and reading the key facts that come with the cover and understanding them.

It is important to be aware that there are exclusions included in the protection that can mean you would not be eligible to claim. This means that the 24 quotes that were given to the watchdog that included cover could possibly have been mis-sold – had the consumer taken it without being aware that the exclusions existed?

Those who only work on a part-time basis, are retired or self-employed, or who have an ongoing medical condition would not benefit from taking out payment protection insurance. These are just some of the exclusions that can be frequently found in a policy.

Those individuals who have loan or credit card payments to make each month who want the peace of mind a policy can bring should visit a specialist website. There are many benefits to going online with an independent provider. The information they provide enables the consumer to make an informed choice regarding suitability before they take on the cover. Getting an immediate quote based on your age and the amount you wish to cover each month is easy and along with this the quote will come with the key facts.

But one of the biggest reasons for going with a specialist is the money you can save on the premiums. Buying cover from an independent specialist can save you up to 80% in comparison to the quotes some high street lenders offer. A quality policy provides peace of mind that you would have a tax-free sum of money if you were to find yourself incapable of working. And there are many reasons why you may be unable to work – such as if you suffered from an illness, an accident or unemployment due to redundancy.

You do have to be out of work for a defined period of time before the policy kicks in. However, with the majority of ethical providers the cover is backdated to day one. Usually you begin to receive the benefit from between 30 and 90 days of continuously being out of action. Payment protection cover then continues for between 12 to 24 months, depending on the conditions set out by the provider. Having this income each month would allow you to relax and get well without suffering from the stress of having to find the money by some other means so that you could continue meeting your loan or credit card repayments each month.

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.

Income Protection Cover Could Provide A Replacement Income

by: Simon Burgess

Those who have loan or credit card debts or a mortgage with repayments to make each month should give some thought as to how they would continue to make these payments if they were to lose their income. While you may turn to savings if an illness or accident prevented you from working for a short period of time, any savings you had would soon dwindle. If you were made redundant then it could take some time to find another job and struggling to meet your monthly commitments would only add pressure to already stressful circumstances. Income protection cover taken out with a specialist provider could give you a replacement income if you lost yours, along with peace of mind.

Payment protection insurance can be taken out for fixed monthly premiums, based on how old you are when applying for the cover and how much you need to cover each month. There is a limit to the amount of your income that you are able to cover and the provider will give details of this in the terms and conditions. By going with a specialist for the protection you can be sure that the policy will be a quality product. It will come with very few exclusions and cover is backdated to the first day you came out of work. Of course, the biggest advantage of getting a quote from an independent provider is the money you will save on the cost of cover. Standalone providers that only sell payment protection will not go for the huge profits that the high street lenders do.

There are exclusions to be found in income protection policies, as with all insurances, which could mean you would not be eligible to claim and so taking out the cover would be useless. While these exclusions can vary depending on the provider offering a policy, there are some that are standard in all policies. Those individuals who are retired, self-employed, suffer from an ongoing illness or do not work in a full-time position would have to give some very serious thought to the policy’s suitability before taking it out. For example, if you do suffer from a pre-existing illness but it has not bothered you during the past two years, protection cover might be suitable. And if you are self-employed and have to stop trading through no fault of your own then you might benefit from cover.

Income protection cover would generally begin to provide you with a tax-free replacement income after being unable to work for a specific amount of time. This is usually within a period of 30 to 90 days of being continually out of work, without having a break in between. Once the cover has started to provide you with security then it would continue to do so for the time stated in the policy’s small print – generally 12 to 24 months. This period usually gives plenty of time for recovery from illness or accident, or enough time to find another job and start earning an income again.

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.

Protect Your Lifestyle With Income Protection Insurance

by: Simon Burgess

Income protection insurance can be a valuable product if you have mortgage repayments or credit card or loan repayments to meet each month. No one knows what is around the corner and if you should become unemployed or have an accident or illness then you could be left struggling. If you can get back to work very quickly then savings could get you by; however, if you should need months away from work to get back on your feet then savings would soon run dry.

A far better solution that does not have to be expensive is taking out an insurance policy that covers your income. There has been much bad publicity surrounding payment protection products, of which income protection is one. However, if you stick with a specialist in protection insurances you can be sure that you will be offered a quality product. You can also make good use of the information that an independent specialist will make available on their website. But by far the biggest benefit of going with an independent provider is the low premiums that are charged for cover, which will be based on your age and the amount of your income you wish to cover. A specialist will allow you to insure up to a certain amount of your monthly income.

Income cover would usually begin to pay out tax-free amounts from between day 30 to 90 of being classed as unfit for work or unemployed. The exact cover start day is stated in the terms and conditions of the policy, as is the length of time that the policy will protect you. This can be anything between 12 and 24 months, depending on the individual provider. While in the majority of cases this would be enough time to recover and start earning again, occasionally the policy ends before the policy holder returns to work and this has to be considered.

You also have to be aware that there are certain terms and conditions that could mean income protection would be useless. Exclusions have to be checked thoroughly. Some are common to the majority of polices, while others are included by specific providers, so you have to compare individual terms and conditions that come with quotes when shopping around for the cheapest policy. Working on a part-time basis, working for yourself, being retired or suffering from a pre-existing illness could all stop a policy being suitable. However, exclusions are not clear cut. Those who suffer from a pre-existing condition could be eligible to take out cover if the illness has not occurred within two years. Self-employed individuals who have to stop trading on a permanent basis through involuntary reasons could also benefit.

A specialist provider will give the information in plain English so you can make an informed decision before tying yourself down to something that is not suitable. Income protection insurance can give peace of mind and the financial security of being able to concentrate on getting better or finding a new job, but you do have to buy cover with consideration.

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.

Income Protection Could Give You Financial Security

by: Simon Burgess

If you were to suddenly find yourself without an income, due to losing your job or being unable to work for health reasons, your lifestyle could change drastically. If you have monthly mortgage repayments to make you would still have to continue meet the costs or risk losing your home to repossession. Loan or credit card repayments would also have to be made too, and you could struggle when it comes to finding the money needed. Income protection could give you the financial security needed each month for a small monthly premium.

A protection policy would replace your lost income up to a certain amount each month. The exact sum you would receive is decided when you take out the cover. A specialist provider will offer the cheapest premiums, which will be based on how much of your income you wish to protect and how old you are when applying for the cover. Along with a quote for the protection, with an independent provider you will also be able to take advantage of the many tips and advice offered by way of articles and FAQs relating to payment protection products. Understanding what you are buying is key to making sure your cover delivers exactly what you need for your circumstances.

Not explaining to the consumer that there are terms and conditions attached to these insurance policies is the main failure that providers have been guilty of in the past, and this is deemed mis-selling. There are some exclusions that are general to all policies and it is essential to check them against your circumstances to be absolutely sure that the policy you are considering would benefit you. Individuals who are self-employed, suffer from an ongoing illness, only work a few hours each week or who are retired might not benefit from taking out cover. However, those who do suffer from an illness should still give some thought to cover if the illness has not been present within the past two years. In addition, a self-employed individual could benefit if they have to cease trading through no fault of their own.

Just as the premiums for income cover varies from provider to provider then so do the exclusions, so it is absolutely imperative that you compare the exclusions along with comparing the cost. Providers can add in their own exclusions too and these can vary considerably. The best independent providers add in very few exclusions and this is what you should check for.

An income protection insurance policy could kick in anywhere between day 30 to 90 of being continually unable to work. Cover is then backdated to the first day of being unable to work, whether that’s due to redundancy or suffering an illness or accident. The majority of policies will last for up to 12 months. There are providers that do extend the payout for up to 24 months, but you can expect to pay a higher premium for this. The terms and conditions will be set out in the key facts of the cover and will include the details of the payout. You should also give some thought to the fact that after the period of protection ends you could still be unfit for work or might not have found another position.

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.

Loan Protection Insurance Will Become More Transparent

by: Simon Burgess

Loan protection insurance has seen many problems, which has led the Financial Services Authority to set out recommendations to improve communication and selling in the sector. Some changes have already been put in place as a result of the recommendations and more are in the pipeline, with the forthcoming introduction of comparison tables in March this year.

It is thought that with the introduction of the tables protection policies will become more transparent, and so consumers will be less confused and less likely to buy an unsuitable policy. Currently consumers often misunderstand payment protection products and don’t know exactly what their policy will deliver. For example, many do not realise there are exclusions in a policy that can stop them from being eligible to claim. However, the tables will highlight the exclusions, make the consumer aware of how much the cover will cost and, through question and answers, allow them to choose a suitable policy.

For now the best way to take out cover is to go to an independent specialist for your quote. A specialist will offer a quality policy along with information regarding the exclusions and other vital facts about the policy you are considering taking out. It is vital that the exclusions are taken into account and read with great care. General exclusions include suffering from an ongoing illness, being of retirement age or only working in a part-time position. However, sometimes the exclusions may not apply – for instance, providing you have not suffered from the illness within the past two years then you could still benefit from taking out cover. The provider may include other exclusions so you have to check the terms and conditions of each individual quote.

The quotes an independent provider can give could save you up to 80% on the cost of a policy in comparison to the high street lenders. The cover taken out will also be a quality product that is backed up by experience in selling payment protection. Generally loan cover will start to provide a tax-free income from one to three months of being unable to work. You have to continually be unable to attend work with no break in between. Once you have started to receive the benefit it would carry on, providing you with peace of mind for between 12 to 24 months, depending on the policy terms. In the majority of cases this is enough time to recover from your illness or accident or to find work.

Loan protection insurance has received a bad name since the Office of Fair Trading revealed that policies had been mis-sold. Faith in all payment protection products was lost and there was a decline in policies sold. However, without a back-up plan to fall back on if you should lose your income, added stress can delay your recovery and make the job hunt more pressured, and you may end up with a bad credit rating that affects your future financial options. Loan protection can work well, providing the policy suits your circumstances. It is important to realise that the product is not faulty; it is those lenders selling policies despite having little or no experience in the sector that create problems.

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.

Loan Protection Cover – Shop Around For It

by: Simon Burgess

To get the cheapest premiums and a quality policy you understand you need to shop around for loan protection cover. When taking out a loan the majority of lenders will offer loan protection cover alongside the money you are borrowing. However, very often the premiums lenders charge for a policy can be up to 80% more than with the cheapest quotes found with a specialist provider, so it is always best to compare the market with an independent specialist of loan protection cover.

There have been many problems associated with payment protection and cost is just one of them. When the Office of Fair Trading began investigating in 2005 they found that the consumers were getting a very poor deal. The selling techniques were very poor and this led to many buying a policy they did not want or could not claim on. Following fines handed out by the Financial Services Authority and the Competition Commissions’ investigation into the sector some changes have been made.

Buying a loan insurance policy can be a wise move. With millions of people borrowing more than they earn by way of loans and credit cards it is essential that you protect your borrowing in some way. Relying on savings should not be your only option to fall back on, because if you were to continue being unable to work for many months your savings would soon dwindle. Finding yourself out of work due to suffering from an accident or illness or being made redundant would leave you struggling. However, if a policy would be suitable then it could provide you with the means to continue meeting your repayments.

A policy could kick in once you had been continually unable to attend work for between 30 to 90 days. Once the policy started paying out it would then continue, giving you a much-needed income for between 12 to 24 months. Usually this is more than enough time for the policy holder to get back on their feet, recover or find another position. However, some thought should also be given to how you would manage to continue making your repayments after the policy had ceased.

There are exclusions to be found in all loan protection cover. Some exclusions are included regularly but others vary from provider to provider. Those who only work on a part-time basis, are retired or self-employed, or suffer from a pre-existing medical condition could find a policy unsuitable. You do have to check the conditions thoroughly because the exclusions may not apply to you. For example, those who do have an illness could take out a policy and be eligible to claim against it if they have not suffered from the illness within the past two years before the day of buying cover.

By going to a specialist provider of loan protection cover you can make huge savings along with getting the essential advice that is needed to make sure the policy is suitable. Information can be found by way of articles and FAQs, and using this information before buying is essential.

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.