Britishinsurance.com has launched low-cost loan protection insurance that cost under a fifth of the average price charged by the top 10 lenders.
As well as the low cost benefits include tax-free benefits being payable from day one rather than being subject to the usual 60-day excess period.
It is a monthly contract that can be cancelled by the consumer at any time, whereas loan protection often requires a single premium which is front loaded and non-cancellable.
Also, it is not necessary for customers to have full cover and can opt for unemployment and incapacity cover in isolation at reduced cost.
Simon Burgess, managing director of britishinsurance, says: Protecting a 7,500 loan over five years with britishinsurance rather than via the most expensive lender creates a saving of well over 3,000. Even in comparison to the cheapest lender it creates a saving of over 1,000. The banks have been profiteering at the expense of consumers for far too long.
Dont forget also that we are not just concerned with a price issue. Being able to purchase the incapacity and unemployment components separately greatly helps the self-employed, for whom unemployment cover on payment protection insurance is highly restrictive. It is also invaluable for those with pre-existing medical conditions which are excluded from incapacity cover industry-wide.