Many consumers don’t realize they have choices when it comes protecting their monthly loan repayments. If you borrow and then take out insurance, you could end up paying a lot more for your premiums. Loan payment insurance can be expensive when purchased from a high-street provider.
You can buy loan payment insurance through a separate provider. A specialist can help you save up to 80% on your premiums. It’s not just the cost of insurance that can vary depending on where you live, but also the information regarding the coverage.
Many people bought policies that were not appropriate for their needs due to poor selling techniques and a lack of information about exclusions. People who were not working full-time, retired, self-employed, or had a pre-existing condition such as a medical condition, could be sold protection insurance. All of these are listed in the exclusions for the majority of loan repayment insurance policies, as well as specific providers. These are the things you need to consider to make sure you can benefit.
A policy that is right for you can be a lifeline in the event that you are unable to work. It is difficult to get a fast and complete recovery when you have to lose your income and pay off loan repayments. Loan payment insurance is a tax-free option that would allow you to recover with confidence. It would also be used to finance your monthly repayments. While you don’t have to be away from work for a set period, most policies provide coverage that goes back to the date you became disabled.
The waiting period for you to claim is between 30 and 90 days. Once you start receiving benefits, it will continue for 12 to 24 months. The provider will determine the exact timeframe. This will be listed in the policy’s terms and conditions. Before you sign on the dotted lines, it is important to carefully read these terms and conditions.
A standalone provider makes it easy to access the information you need to make informed decisions. FAQ pages will explain the details of your policy and provide clear explanations. You can also get free advice on any aspect you don’t understand about loan payment insurance. You can have peace of mind and a steady income in the event that you are unable to work because of an accident or illness. You don’t have to pay a lot or be difficult to understand if your provider is independent.