When it comes to getting cheap UK loan protection insurance, all you have to do is know the best way to buy the cover. Most of the time, you can find the cheapest premiums by shopping around and getting your coverage from a provider who specialises in that area. Most people are wrong, though, when it comes to loan protection insurance. They think that you have to get it from the same company that gives you the loan, which is usually a bank or lender on the high street. As the media often points out, if you get insurance from a high street lender, you are likely to pay a lot more than you should for the premium.
When you compare a high street lender to a stand-alone provider, the insurance premiums they ask you to pay are very different, and the difference you pay could add up to thousands of pounds over the life of your loan. Recent investigations by the Financial Services Authority and the Office of Fair Trading have shown that the quality of the product is another problem with buying from a high street lender instead of a specialist provider. Policies are different, and if you want the peace of mind that comes with a good product, you may only be able to get it from a stand-alone provider.
Recently, the UK loan protection insurance market has been in the news because it was found that many policies were sold incorrectly. This means that many policyholders can't make a claim. But if the product is bought right, it can be a great safety net. If you can't work because of an accident, illness, or being laid off, a good and cheap UK loan protection insurance policy will cover your monthly loan or credit card payments.
After a certain amount of time without a job, the policy will pay out for a certain amount of time, usually between 12 and 24 months. It's not hard to find cheap UK loan protection insurance if you do your research and go with an independent provider. Only then can you get the best advice and the best product for the cheapest premium.
