In 2007 over 4,000 cases of mis-sold payment protection were investigated by the Financial Services Authority. This is amazing because in 2005 when the investigation started into the sector, the FSA highlighted changes that were needed when it came to selling loan cover and related payment protection products. While some improvements within the sector have been seen, the figures show that many more clearly need to be made.

Mis-selling of payment protection has included selling cover for high premiums in favour of raking in huge profits in excess of £4 billion a year. Often very little information - if any - is given regarding the typical exclusions in a policy which has led to many consumers buying cover they were not even able to claim against. Those who are retired, self-employed, suffering a pre-existing medical condition or only work part time might not be eligible to claim.

There can be other exclusions set out in a policy by the provider and these can be found in the small print. It is essential that you read the terms and conditions as this can affect each individual. Standalone specialist British Insurance offers the most transparent policy wording with one of the cheapest quotes.

Loan cover is offered when you borrow from the high street lender but this can be the costliest way of taking out a policy. Very often little information is given when buying a policy and it has also been known to be included in with the cost of a loan without the consumer actually being aware, so always check the terms and conditions.

Providing loan cover is suitable for your circumstances it can provide you with the income each month so that you could continue to meet your credit and loan repayments if you were to come out of work. Suffering an accident or sickness which would keep you off work or through unemployment of no fault of your own would leave you with very little or no money. However you would still have to find the money to meet your financial commitments.

Loan cover taken out from British Insurance could begin to give you an income from day 31 of being out of work. The tax free income it provides would then continue for up to 12 months, giving you enough time to hopefully get back on your feet and back to work.

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