British Insurance has launched a new payment protection insurance product which is more than £30 a month cheaper than the average high street PPI policy.
If a 30 year old couple took out a £7500 loan over five years with monthly repayments of £147.33 insurance over the life of the loan would cost £3591 from Bank of Scotland. In the same case, cover from British Insurance would cost £287.40.
Managing director Simon Burgess says: “There is simply no excuse for providers to be charging such high prices and there can be no way in which to justify them. Loan protection continues to be used by many banks and building societies as a way to swell profits rather than cater for customers’ needs.”
Highclere Financial Planning partner Alan Lakey says: “There is a place for this type of cover because not all people want to take out comprehensive insurance but you are limiting cover to the loan. This product is a step in the right direction as long as we do not lose sight of the Rolls Royce of protection – a comprehensive life, critical illness and income protection package. PPI is like putting a bandage over a gaping wound.”