Bank loan payment insurance
The above quotation link will enable you to get an instant, online quotation for an insurance policy designed to provide an income to help meet your monthly bank loan payments when you are unable to work through accident, sickness or unemployment.
The UK is experiencing an increasing dependency on bank loans, credit card and unsecured loans, and with interest rates as they are at present there is no sign of this changing for the foreseeable future.
Bank loan insurance policies to cover against unemployment does not have to be expensive, especially if you are prepared to shop around. The Financial Services Authority is currently working on trying to get firms who sell payment protection insurance (PPI) to "treat customers fairly". This was instigated after discovering that many bank loan insurance policies were being sold automatically, as part of the bank loan sales process, and without checking eligibility or affordability.
The quotation facility above will take you to an online, instant, age related bank loan insurance quotation system where you can get a quote and apply online for bank loan insurance to protect against accident, sickness and unemployment.
FSA fines Bank For Loan Insurance Sales
The Financial Services Authority imposed a £7,000,000 fine on Alliance & Leicester after it found that it had not given its bank loan customers adequate guidance on whether to take out bank loan payment protection insurance on the product.
The FSA said telephone sales staff at the bank failed to make clear that the bank loan insurance for its loans was optional, and they were also trained to put pressure on customers when they queried the inclusion of bank loan insurance.
The bank loan payment insurance, which increases
payments on bank loans by about 30%, has been highly
profitable for banks selling the insurance. The bank
loan payment protection insurance was sold to
borrowers with the promise it would cover bank loan
repayments when the customer is out of work due to
unemployment, accident or sickness.
But few policyholders have ever successfully
claimed; even less were able to recoup more than the
cost of the upfront premium and the extra interest
paid after it has been added to their overall bank
loan. Many bank loan payment insurance policies were
sold to borrowers who were ruled out from ever
claiming from the start by the small print.