A Quick Guideline To Loan Protection Exclusions

Loan protection have been in the media a lot recently as a result of client accusations that the suppliers of loan protection are simply just ripping off consumers to gain instead of evaluating what is in their best interests. This might appear to be a outrageous claim right until you're presented with the evidence.

The finance industry regulator the Financial Services Authority has in reality discovered that in some instances loan protection policies were being sold to people who could possibly in no way benefit from them because they would not qualify to claim should these people find themselves out of work as a result of illness or being out of work.

There are various explanation why a person will be not able to take advantage of or to claim on loan protection, and all of them are contained within the small print, or the terms and conditions. It is therefore important that a client reads these details before taking the loan protection out.

Although every individual policy will have its list of exclusions, and they largely be determined by the company, there are many common ones that all loan protection policies have. The first is you should be between 18 and 64 to claim on the majority of them. Any over the age of that and you are no longer deemed to be of working age. Many do not include this condition right now as a result of the act against age discrimination, but it is still worth looking for or inquiring about.

You need to to be working on a full time basis to be able to claim on loan protection. In case you work lower than sixteen hours a week or don't work then you cannot claim. The whole idea behind loan protection is that it allows you to maintain repayments if your cash flow is dramatically lowered. However, if you are not working to begin with or are not the main wage earner then it would be argued that your debts should not be affected.

Naturally these are generally only two of the exclusions associated with the conditions and terms of loan protection, however without a doubt you should have an idea regarding whether or not you qualify for it! Make sure you read all of the conditions and terms and take independent advice if necessary and you will not go far wrong!