Monthly Archives: October 2017

Loan Payment Protection Insurance

Nowadays, every time you apply for a loan you will most likely be offered payment protection insurance. If you are taking out a particularly large loan, the idea may seem very attractive. These insurance policies will take over repayments on your loans in the event of losing your job or being involved in a medical emergency. But what are the true costs and benefits of this type of? Given that over a billion pounds is spent in Britain on this kind of insurance annually, it is worth asking yourself.

The Cost Of Insurance

The fact of the matter is that the lending industry has become more and more competitive in recent years. With interest rates getting lower and lower, lenders have sought to find out ways of increasing their returns. One of the ways they have come up with is to offer various additional products that accompany the loan, such as payment protection insurance. What may come as a surprise is that payment protection can often cost as much as the loan interest repayments. The payment protection repayments can, incredibly, effectively double the cost of the loan. With such startling consequences, it is imperative that consumers think carefully before opting for such options.

Peace of Mind?

Many people will hold the view that as lives and jobs become more and more unstable, the peace of mind offered by such policies are worth the price. In some cases this is true, but not always. Every insurance policy varies, but one thing remains the same, it is very difficult to get an insurance policy to pay out. You should look very carefully at the fine print of your policy and you will be amazed to find out what actually is covered, and what exclusions and exceptions apply.

For example, unemployment protection may only kick in after a certain period of unemployment, will not count if the unemployment was voluntary, and can require proof that the applicant has actively sought employment, and not turned any down, for the period since losing their job. This will give the insurance company literally dozens of reasons for refusing pay out in most instances.

Don’t Accept The First Quote!

As well as these conditions, you should also shop around. The person you are borrowing from will always offer you a policy, but this unlikely to be the best policy available and a little shopping around will go a long way. You will probably also find your self better terms or terms that suit your needs more closely. Government standards are in place to make sure such policies are clear and in plain language, but complaints are still pouring into consumer protection groups regarding these policies.

The basic advice here is be very careful if opting for expensive insurance policies. Make sure you understand the terms, and that you think they might be of benefit to you, and if you don’t want the policy, just say no.

Loan Payment Protection Insurance And Consumer Society

Loan payment protection insurance has never been more relevant to society than it is at the moment. It is a fact that the UK’s population as a whole has never been more indebted than it is right now. More and more individuals are accumulating debt as a direct result of spending beyond their means and facing up to the consequences of their actions later.

However, debt may not necessarily come as a result of over-spending. It may simply be that individuals have to run up debts in order to survive as a result of the gulf between the cost of living and the actual level of earnings. Christmas is a prime example of a time of year when many families take out loans in order to pay for their celebrations. What if an individual lost his or her job though? How would the debt affect his or her life then? That is where loan payment protection insurance becomes an appealing prospect.

Loan payment protection insurance is designed to make monthly repayments on a loan should the individual in debt lose his or her job via redundancy or be unable to work as a result of long term illness. These loan payment protection insurance policies provided tax-free payments, typically for up to twelve months, thus giving the individual peace of mind and removing the stress of finding an alternative way to make repayments. Obviously it is necessary for the individual in question to let the provider know of a change of circumstances, but a claim can be made after a period of a month out of work in most cases.

It is possible to purchase loan payment protection insurance to cover all debts from a standalone provider. The premium is paid monthly and often calculated on the level of debt rather than at a fixed rate. If an individual has extensive debts with several providers, then this form of loan payment protection insurance can actually be far less confusing than having several policies at the same time.

Loan Protection Insurance Is Still Worthwhile Considering Despite The Bad Publicity

Despite the bad publicity surrounding loan protection insurance it is still worthwhile considering whether a policy would be in your best interests. The cover has come under fire but it is not the actual product that should be the cause for concern but rather those who sell it with very little experience.

The majority of policies that are mis-sold are bought alongside loans at the time of taking out the borrowing and high profits have been put ahead of the consumers’ best interests. This is not surprising when you consider that high street lenders bring in profits of over £4 billion each year when selling payment protection insurance policies alongside loans and mortgages. Cover bought alongside loans often comes with the highest premiums and by choosing to take out the cover independently you can make huge savings on the cover along with getting the information needed to make an informed decision.

It is the exclusions which have caused the majority of problems – or rather the lack of knowledge about them at the time of being sold the policy. Exclusions which are common to the majority of loan insurance policies include being in part time employment, suffering a pre-existing medical condition, being of retirement age or working only part time. There can be others set out by the provider so it is essential that when you compare quotes for the cover you also compare the exclusions. The exclusions can be found in the small print of the policy and a specialist provider will always offer this information before you buy the cover.

Providing loan protection insurance is suitable for your circumstances then it can give you a tax free income with which to pay your monthly loan repayments and so keep out of debt. If you were to come out of work through suffering an accident, illness or through such as unemployment then you would still have to continue repaying your loan or credit card each month. Without a lifeline you could find yourself getting into debt or worse.

Cover could begin to payout from between the 31st and 90th day of being continually out of work and would then last for between 12 and 24 months depending on the provider. This means that you would not be struggling where to find the money each month and have peace of mind until you got back on your feet and back to work.

Sticking with an independent specialist provider you can be sure that you will get the information needed to be sure that a policy would be suitable for your needs. Along with this you will get the cheapest quotes possible for the cover which will be based on your age at the time of taking out the policy and the amount your loan repayments are each month. Always avoid taking out the cover alongside your loan and make sure that you check the cover has not been included in with the cost of the loan or credit card as some lenders will give you a quote for the loan with loan protection insurance already included.

Low Rate Senior Term Life Insurance

A senior term life insurance policy is an excellent way to supplement the financial assistance you leave behind for your family. Whether you already have a whole life insurance policy, or a nest egg set aside for just this purpose, a senior term life insurance policy will give additional coverage to your beneficiaries.

If you are a senior who already has a life insurance policy, chances are you purchased that life insurance policy many years ago. The amount of life insurance coverage you purchased at that time may have seemed sufficient at that time, but the cost of living increases over the years. This means the amount of life insurance coverage you purchased years ago may not be sufficient coverage for your beneficiaries today. Plus, the cost of living continues to rise, so you always need to keep an eye on the amount of life insurance coverage you have.

Other expenses need to be taken care of once you are gone, aside from your lack of financial contribution. Your beneficiaries will need to pay for your funeral and burial services. The average funeral can cost up to $10,000 today, and just as the cost of living continues to increase, so might the cost of the average funeral. Having an additional senior term life insurance policy will help your beneficiaries pay for the cost of your funeral and burial.

People today are living much longer than people years ago lived, which means your beneficiaries might live for many years after your death. You want to make sure your life insurance coverage is enough coverage for the duration of the rest of their lives, or however long it may take for them to financially adjust to your death.

So, if you are a senior who already has a life insurance policy, or savings account set aside to financially compensate your family members, take another look at the amount of coverage you have.

Low Cost Life Insurance

Finding low cost life insurance need not be a complex process. The life insurance market in the UK is extremely cost competitive, with a glut of cost orientated life insurance companies keeping the cost of life insurance at record low levels. Competition in low cost life insurance has increased further over the last few years, with low cost UK supermarkets like Tesco and ASDA now offering cut-price low cost life insurance. A £100,000 term life insurance policy for 25 years now has a low cost of around £5 – £6 per month for a young non-smoker with low susceptibility to health problems.

But, despite the greater accessibility of low cost life policies, the cost of life insurance premiums does vary. Here is a review of the major factors that influence the cost of life insurance policies: –

Low Insurance Age – The age at which a life insurance policy is taken out has a significant impact upon the low cost of the life insurance premiums paid. The younger you are when you start a life insurance policy then the better chance you have of obtaining a life insurance policy at low cost. This is because at a younger age you are viewed as being at a low risk of passing away than someone 30 or 40 years your senior. Life insurance premiums will therefore be at a low cost for young people, but not so low cost for older people.

Health – Life insurance companies will award low cost life insurance to people who have low health risks. To qualify for life insurance at low cost on health grounds you will need a low level of hereditary disease running in your family. If you suffer from a life threatening disease, such as cancer or heart disease, your life insurance cost will not be so low. Also, if asthma, high blood pressure or cholesterol problems exist then a low cost insurance policy could cost that little bit more.

Lifestyle – A low cost life policy is available to those with a low stress / low danger lifestyle. If you drink excessively or you are a smoker or practice extreme or dangerous sports / activities then a life insurance policy that is low cost could be out of your reach.

Insurer Cost – Finally, no matter what type of life insurance cover you have, be sure to check the cost of other life insurance policies regularly. The life insurance market is always changing, so you just might find a better low cost provider of low cost life insurance the next time you search the life insurance market for low cost insurance policies.

Payment Protection Insurance Needs Careful Consideration If It Is To Work

Loan payment protection insurance can do the job it’s intended to do and it can do it well providing you have first ensured your circumstances are suitable for a policy before you take it out. You have to understand the product before you buy it and read the small print of the policy to make sure that the exclusions which can be found in all payment protection policies won’t stop you from making a claim.

When you have made sure it is a suitable product then you can get a quote for loan payment protection insurance with a standalone specialist provider. Historically, the standalone provider is always the cheapest way to purchase the cover and the cover should be avoided being taken out alongside the loan from the high street lender as this can adds hundreds more onto the cost than it need too. The specialist will give you the cheapest quotes along with the advice you need to make sure that you understand what you are buying, whether it is suitable for your needs and how much the cover will cost in total.

Loan payment protection insurance can be taken out if you want to protect your loan repayments against the fact that you might lose your income through suffering an accident, illness or if you were to be made redundant and should be unable to continue repaying what you owe each month. If you get behind on your loan repayments then you will get into debt and earn yourself a bad credit rating which could take years to repair. Loan protection could give you a tax free income each month which enables you to make your monthly repayments without worry, policies generally payout anywhere between the 31st day and the 90th day of being out of work and would then continue for between 12 and 24 months. This is usually more than enough time to get back on your feet and back to work again.

However in the past the protection has been slated and earned itself a bad reputation but it is important to realise that it isn’t the products which are to blame but the poor selling techniques of the lenders who have no experience in selling payment protection products. Problems were brought to the attention of the Office of Fair Trading in 2005 after the Citizens Advice made a super complaint. The Financial Services Authority began an investigation and fined several major high street names for mis-selling the cover alongside loans and mortgages.

During a recent review it was found that while some changes had been made many firms were still not making policies clear enough at the time of selling them and consumers were still confused by what they were actually buying, how much the cover cost in total and what the exclusions in a policy meant.

A comparison table is set to make this easier when it is launched in March 2008, the tables will help the consumer to decide what policy is suitable for their needs, it will tell them how much it will cost and what the exclusions mean which should make buying the cover a lot easier than it is at present. As loan payment protection insurance does need careful consideration if it is to work as intended then stick with a standalone specialist who knows the business and who can give you the information you need along with the cheapest quotes for the cover.

Low Rate Car Insurance

Everyone likes to save money! That fact is not a secret to anyone. When trying to save money on car insurance, a question that should be considered is, “What will be the cost to me for “saving” money?” This question is meant to help people realize that there is a difference between “price” and “cost”. While Company “A” may offer slightly lower or even much lower premiums than Company “B”, Company “B” may offer some services that you prefer, i.e. a local agent, 24 hour service, online service etc. These services may be worth the extra price to some people, and not for others. Thus, it is shown that services received may out-weigh the price paid.

Another factor to take into consideration is the quality of service you receive from an insurance company. While all auto insurance companies want you to believe that they are as good, or even better than the next company; that is simply not true. There are drastic differences in overall service, claim handling, and personality of individual companies. One company may offer exceptional claim’s service, but perhaps it is very difficult to actually get in touch with the company’s claim’s department; while another company may have terrible claim’s service, but their claim department is easy to reach.

One must ask themselves, “Is it worth paying lower premiums to receive a lower quality of service, or am I willing to pay a bit more to ensure that my service is exceptional?” Don’t misunderstand. Just because a company offers lower premiums, does not necessarily mean that company’s level of service will be lacking. Great service can come at any price.

The most important item to remember while searching for lower premiums is to do your homework. Talk to your family, friends, and co-workers. Ask them where they are insured, and if they are pleased with their insurance company. Remember, not all insurance companies are created equally, for instance, a company that runs completely over the phone or internet will have different costs than a company that employs fulltime agents. That is because the cost of doing business is different for each of those companies. This brings the question again, “What services do I value in my insurance company? Do I want the package Company “A” offers or that of Company “B”?”

Low rate car insurance is in the eye of the beholder. Simply put, different services are worth different amounts to different people. So find the company with the services you desire and let the games begin.