It’s been a while since I’ve written anything but this had to be said! A lot more information is being made available regarding loan payment protection and the cost to the borrower and the benefits of shopping around for prices.
I recently looked at the figures and found some staggering results.
One lender quoted for a £10,000 loan over 7 years, repayments of £158 without loan protection or £213 with protection.
That’s £55 per month just for the protection.
Whereas, loan repayment protection insurance from an independant provider can cost as little as £2.50 per month.
Yes, it’s true.
http://www.antinsurance.co.uk will cover repayments of £160 for up to 12 months for only £4.
£4 covers the repayments for 12 months and provides Accident, Sickness and Unemployment cover.
If you’re self employed, it’s not worth getting unemployment cover because it will only kick in once the company is in the hands of the receivers and you’ve signed on.
So for a self employed person taking out Accident and Sickness cover to meet the loan repayments for 6 months, the price quoted online today was only £2.50 per month.
£4 per months gives 12 months of repayments and Unemployment cover as well.
Do the maths.
4/55 x 100 = 7.3%
That’s comparable loan repayment protection insurance for less than 10% of the cost quoted by the lender.
£4 x 12 = £48 per year
£55 x 12 = £660.
What would you do with that extra £612??
http://www.paymentcare.co.uk/ also provide a range of protection policies including life cover and mortgage repayment protection.