Most of us, at one point or another, have taken loans. It could be a mortgage, credit card loan, or personal loan.
Whatever the loan may be, at one point in our lives, we have been offered insurance coverage that covers the repayments. This is offered so that if ever you are not able to work, due to redundancy or sickness, there is a way for repayments to be made. Hop over here to know more about payment protection cover.
Policies like these are known as Payment Protection Cover. The idea of having a repayment option in times of need seems very ideal but in recent years.
It has been in a lot of scandals due to how the coverage is marketed to the consumers. This is very different from insurance policies that are sold in order to get a mortgage.
The main problem with such insurance is that the lenders sell this to individuals who are not really covered by these kinds of policies. They only find out about it when they are applying for a claim.
These people will include people with pre-existing medical conditions, self-employed individuals, retired people, and already unemployed individuals. There are some lenders that also market this insurance as a way of getting credit even if the insurance is not applicable. Though the said methods are not deemed as illegal, it is still a big question as to why organizations like the FSA do not seem to take the matter seriously.
The people offering this kind of protection should take into consideration what the clients actually need. They should not market the insurance to those people who do not qualify for the coverage.
They have to make sure that it is actually suitable for the consumers and those who will benefit from the program knowing that they can use it when the worst comes.
Even with these conditions, only a third of claims are actually successful. Though this is marketed to offer peace of mind, the only ones getting that peace of mind are those in the insurance company.