hile payment protection month after you have been out of
insurance can be a work for a set period of time.
valuable asset if you The start date for payment varies
have loan or credit card from provider to provider but is
repayments to make each month, it normally within 30 to 90 days of
is not suitable for everyone. being unable to attend your job.
Some individuals would not This could be due to suffering an
benefit from taking out the cover accident, being ill or finding
because of the exclusions found yourself unemployed through no
in a policy. fault of your own. Redundancy,
The majority of payment for example, is one reason you
protection policies have could claim.
exclusions. Being in part-time
Once the policy holder has
employment, suffering from a started to receive an income then
pre-existing illness, or being they continue to do so for
retired or self-employed could between 12 and 24 months, again
all mean cover is not suitable. depending on the provider. This
Providers can also add in other means they have to worry less
exclusions to the small print and about being able to afford
reading the key facts of a policy financial commitments or credit
is a necessity. If you shop with card or loan repayments.
a specialist provider for your
When taking out a loan from
cover then the provider should the high street lender payment
give you all the facts you need protection is usually offered at
to know before you buy. This the time of borrowing. In the
means you can ensure that the majority of cases this is not the
product is right for your ideal way to buy protection. High
circumstances.
street lenders are known to
A payment protection plan pays charge high premiums for the
out a tax-free sum of money each luxury of having peace of mind.
Even worse, in some cases they English. A specialist will also
‘push’ cover alongside the provide a quality product that
borrowing to those who would not can save you as much as 80% in
be eligible for a pay-out should comparison to the high-end quotes
they make a claim. offered by some high street
When an investigation by the lenders. It is essential when
Office of Fair Trading revealed comparing protection that you
that mis-selling of payment also compare the key facts
protection products was rife because this is where you will
among high street lenders, people find vital information regarding
lost faith in the product. The the cover you are taking out.
Office of Fair Trading
highlighted the fact that lenders
very little information, which align="center">
made understanding and comparing
cover almost impossible.
Payment protection insurance type="text/javascript">
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About the Author:
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of payment protection insurance, mortgage payment protection insurance and income protection insurance.
Article Tags: cover, high, protection
