The terms and conditions that come with loan payment insurance do differ, which means that when comparing quotes you also have to compare the key facts. The key facts detail the exclusions in a policy and there are some that are seen on a regular basis in policies. Those who are of retirement age, are working for themselves, have an ongoing illness or who only work for a few hours each week would not benefit from cover. However, if the illness has not been present during the two years before applying for a policy then this exclusion would not apply. The same goes for those in self-employment who find themselves unable to continue trading through no fault of their own.

The easiest way to gain all the information regarding loan insurance is to go with a specialist website online. A specialist in loan payment protection will only sell payment protection products, which include the loan and mortgage payment protection along with income protection. Because they specialise in selling cover standalone providers have experience when it comes to selling a policy and so can give the best advice possible regarding the suitability of the product. A specialist will always ensure that the individual gets access to the vital information, along with providing FAQs and articles relating to policies that can make choosing easier.

A loan cover policy can start to pay out once you have been continually out of work for a period of between 30 to 90 days. Cover would then carry on giving a tax-free income for between 12 and 24 months if it was needed. Check the terms and conditions of the policy to see exactly what timescales are involved.

Although a policy is generally offered alongside a loan at the time of borrowing often very little information is given and the premiums can cost around 80% more than an independent provider charges. In fact, recently a consumer organisation reported that out of the 42 lenders they sought quotes from, 21 included the cost of payment protection insurance in with the quote. Along with this all but one gave two separate quotes, one with cover attached and the other without.

You also have to take care when buying a loan online. Sometimes when applying online the cover can be included automatically unless you choose not to have it by clicking to a different page. When taking out a loan this way you have to read the terms and conditions online before signing up for the loan. However, since an investigation by the Office of Fair Trading and the Financial Services Authority many online lenders have now agreed to change the way they sell protection.

One of the biggest changes aimed at making loan payment insurance more transparent is the introduction of comparison tables. These will highlight the exclusions, which will make deciding the suitability of a policy easier. They will also make it transparent how much the policy will cost, so that you can see clearly which type of cover is the best choice for your circumstances.