If you, like the majority of individuals, rely on using credit cards to make ends meet then you need to give some thought to taking out credit card payment protection insurance. The insurance, when taken out with an independent payment protection provider, does not have to cost a fortune and it can keep you out of payment arrears if you lose your income. You might lose your income to accident, sickness or you could become unemployed.
You would take out the protection by insuring a percentage of the balance outstanding which is set by the provider and then you claim this sum back tax-free, if you should need to make a claim. The sum of money would go towards the repayment and ensures that you would be able to continue meeting them. If you did not have something to fall back on and lost your income then at the very least you would earn a bad credit rating and this means that borrowing in the future would be almost impossible. In the worst case you would be taken to court by the lender so they can claim back the money you owe.
If you were to get your quote for credit card payment protection insurance from standalone specialist British Insurance you would make the biggest savings when compared to taking the cover alongside the card with the lender. High street lenders make around £4 billion each year by adding in payment protection alongside their loan, mortgages and credit cards. A standalone provider would give you a premium to pay each month which is based on the amount you choose to protect and your age when applying. The younger generation get the cheapest deal which means the payment protection is now affordable with British Insurance.
British Insurance would begin to provide you with an income after the 30th day of your being unemployed or incapacitated and they backdate their cover to day one of you becoming unemployed or from being unable to work. You would then be given a payment each month for up to the maximum of 12 months and then the protection would expire. If you chose to look at protection with other providers you have to make sure that you check the terms and conditions as there could be different starting and ending dates. Some providers will continue to provide you with an income for up to as long as 24 months. However you also have to be aware that the starting date with some providers can be anything up to 90 days before you can put in a claim and not all providers may payback to day one.
Also check the small print of any credit card payment protection insurance that you are considering taking out. There are always exclusions that need comparing against your circumstances. It is essential that you do know about these and have checked them before you take on the protection and British Insurance supply you with these on their website.
Related Posts
- Credit card protection – peace of mind in the event you lose your income
- The benefits of credit card payment protection insurance
- Credit card cover from a standalone provider works out cheaper
- Credit card insurance – are your repayments protected?
- Have you considered credit card protection insurance?