Loan protection services and insurances are under the Financial Services Authoritys highlight lately as well as the Office of Trading. There have been many complaints by consumers who are terming it as a poor product. Financial experts are also looking into loan protection services as they too have defined them as unprofessional in terms of the premium costs some providers charge.
However, there are also advantages to loan protection services for they can also be very beneficial it really depends what service you are looking for exactly. Loan protection services and insurance can work either to a consumers advantage or disadvantage, this will depend what the consumer wants the loan protection service for and whether he or she really does need this loan coverage.
Unfortunately it is difficult to pinpoint which points are positive and which ones are not due to the bad publicity these loan protection services have received lately. This is why they should be viewed from an impartial point of view and consumers should examine the options they propose with an impartial eye. Once consumers have examined all the issues and options they can then decide whether a loan protection service can help their specific case.
One of the major advantages of having insurance with loan protection services is it makes consumers feel protected and stress-free. It will give you the peace of mind that most of us are lacking nowadays what with recession and job loss problems. It is nice to know that should you have problems with your job the loan you have taken will be cared for by the loan protection insurance.
Most loan protection services will take care from twelve to twenty-four months of your loan payments should you be unemployed for any reason. This means that loan protection services can be of an immense advantage if you find yourself in this type of situation. Some of this loan protection services also propose individual policies that can be paid on a monthly basis, thus reducing your budget.
A considerable disadvantage can be that many consumers may actually pay more than what was initially established for their loan protection insurance as some companies will add it to the total of the original loan. This will obviously increase your repayments and not be convenient for your case. It is important you consider if indeed these loan protection services may serve your particular case, as sometimes they may be totally irrelevant for you. One condition these loan protection services require is that you work at least sixteen hours a week, if you do not then you are not eligible to claim the protection, but you may find this out after you have been paying for months or years.
It is important you consider all the issues and terms and conditions to see whether this kind of loan protection service can serve your case and calculate the advantages and disadvantages you may have once you have taken one of these loan protection insurances.