| At some time we all take advantage of credit cards | | | | itself. |
| as a way of borrowing. Whether we use them on a | | | | A specialist in loan payment protection insurance will on |
| regular basis and just keep adding to them each week | | | | the other hand base your premium on your age and |
| for bills such as groceries, or whether we use them to | | | | the amount of your payment that you wish to protect. |
| make large purchases. While we are working this | | | | Lenders will allow you to protect up to a certain |
| poses no problem we simply pay the credit card bill | | | | amount each month and this is the sum you will |
| when it is due. The same goes if we take out a loan; | | | | receive if you need to claim. You do have to be |
| we repay it through monthly instalments. However | | | | unemployed or incapacitated for a certain amount of |
| problems can arise if we lose our monthly income. | | | | time before the provider will begin to payout. Usually |
| Suddenly being without an income can make life | | | | this is around 30 or 90 days. However some providers |
| extremely difficult. Loan payment protection insurance | | | | will make sure you do not lose out because they will |
| can cover your outgoings in case of unemployment or | | | | backdate the policy to the first day of you coming out |
| incapacity so that you are able to maintain those | | | | of work due to accident or sickness or of being made |
| repayments each month. | | | | unemployed. Your cover would then run for a period |
| A policy can be taken out for a fixed premium each | | | | of between 12 and 24 months, providing a tax-free |
| month with a specialist offering payment protection | | | | income each month before ceasing. |
| and this is the cheapest way to cover your outgoings. | | | | Shopping around and comparing the premiums is |
| When taking on the credit card or going for a loan you | | | | essential if you are to get the cheapest policy. You |
| will probably be asked by the lender if you want to | | | | also have to check the terms and conditions of the |
| take out protection. In the majority of cases this is not | | | | cover before deciding which policy to go for as they all |
| the cheapest way to protect your borrowings. High | | | | differ. Payment protection has in the past been a |
| street lenders make around £4 billion a year in | | | | cause for concern and several well known names on |
| profits from the sales of payment protection simply by | | | | the high street were handed out fines for mis-selling |
| adding in it with the borrowing, in some cases lenders | | | | policies. However it has to be remembered that when |
| with work out how much it would cost to cover your | | | | taken out with your circumstances in mind loan |
| loan throughout the term of the loan and then add in | | | | payment protection insurance can be a very valuable |
| cover. This means that you not only pay interest on | | | | product to have in your corner, providing you have |
| the amount you borrow, but also on the protection | | | | checked the small print and ensured suitability. |