Loan insurance changes proposed
The Competition Commission has proposed changes to the way loan insurance is sold. The majority of loan insurance policies are sold with the finance package at point of sale. Consumers therefore have little opportunity to shop around for cheaper or better loan insurance cover.
They state that payment protection insurance (PPI) should not be offered to a customer within 14 days of being sold a loan product.
On the downside, this means that some consumers will be left without cover if they choose not to accept the separate offer of loan insurance.
However, it does mean that they do have time to look for an independent loan insurance policy that provides excellent cover at a competitive price. This will allow them to buy a much better loan insurance product and pay less for it.
With BT today announcing proposed redundancies of 10,000 and other companies also laying off staff, the issue of redundancy insurance is on many peoples minds.
Personal loan insurance can provide cover for accident, sickness and unemployment and is designed to make the repayments on a personal loan for upto 12 months. Redundancy insurance can be obtained with an income protection policy which covers just your income or a mortgage payment protection policy which covers your monthly mortgage payments.
