Sadly many consumers do not realise that they have many options when it comes to protecting the monthly repayments on a loan. Those who are misguided into taking out cover at the same time as borrowing could find that they are paying way over the odds for the premiums. This is because the loan payment insurance is often costly when buying this way from a high street provider.

The fact is that you can choose to buy loan payment insurance from a standalone provider. Getting quotes from a specialist could save you up to 80% on the premiums. And it is not only the cost of the insurance that differs, depending on where you take out your policy, it is also the information given regarding the cover too.

Poor selling techniques and lack of information regarding the exclusions led to many buying a policy that was not suitable for their circumstances. Protection insurance was sold to those who only worked part time, were retired, self-employed or who suffered a pre-existing medical condition. These are all listed in the exclusions of the majority of loan payment insurance policies along with the specific ones from providers. It is these that you have to check against your circumstances to ensure that you would be able to benefit.

If a policy is suitable for your needs then it can truly be a lifeline if you were to be unable to work. A loss of income together with trying to meet loan repayment commitments would add to an already stressful situation and is not the perfect recipe for a quick and speedy recovery. If you want to recuperate with peace of mind then loan payment insurance would present a tax free sum each month which would be used to continue financing your repayments. You do have to be off work for a defined period of time but with the majority of policies cover is backdated to the day you first became unable to work.

The waiting period before you can claim varies between the 30th and 90th day and once you have started receiving benefit it would continue for between 12 and 24 months. The exact time frame will depend on the particular provider and this will be stated in the terms and conditions of the policy. It is essential to read this through and make sure you understand what you are buying before signing on the dotted line.

Luckily getting access to the vital information needed to make an informed decision is easy with a standalone provider. You will be able to find FAQs pages where cover and the technical terms within it are explained in plain English. Along with this free advice is always available on any aspect of loan payment insurance you do not understand. Peace of mind and an income if you should suffer through being out of work due to no fault of your own are available. It also does not have to cost a fortune or be very hard to understand if you stick with an independent provider.