In 2005 the Office of Fair Trading began investigating mis-selling of loan protection insurance cover and related payment protection products. Changes have been made over the years but it seems that in some cases policies are still being mis-sold to those who cannot claim against them. While the cover can be a Godsend if you should find yourself unfit to go to work, it is not a suitable product for all.
Exclusions can stop individuals from being eligible to claim. Frequent exclusions include being in part time work, suffering an ongoing illness, not being in work due to retirement or if you are self-employed. While these are the reasons most widespread, individual providers can add in others so reading the wording of the policy’s key facts is vital.
Last year the Financial Services Authority (FSA) investigated over 4,000 cases of mis-selling and continued to hand out fines. The most recent step taken in the war against those mis-selling loan protection insurance cover and related products is to fine to Chief Executives, with the first being a mortgage firm.
Simon Burgess, Managing Director of payment protection specialist British Insurance and a staunch campaigner for the consumer warns that many more should be prepared to receive a personal fine along with a company one.
Buying protection cover from British Insurance can help you to make savings of up to 80%. Along with this they give the consumer the information and advice needed to establish that a policy would be suitable.
Loan protection insurance cover can supply you with a tax free income so you are able to keep meeting your loan repayments each month. Cover would commence once you have been out of work for a fixed period of time. With British Insurance this is from the 31st day of being unfit for work and will go on for up to 12 months. Other providers might lengthen this to 24 months but the waiting period can be elongated to 90 days.
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