Most of us, at any stage or another, have got loans. It may be a mortgage credit card loan or a personal loan. Whatever the loan may be, at one stage of our lives, we have been supplied an insurance policy that insures the obligations.
This is sometimes offered to make sure if you are not able to function, as a consequence of redundancy or sickness, there is a way for payments to be created. You can get mortgage payment protection insurance via Foxgrove Associates.
Policies like these are known as Payment Protection Cover. The idea of having a repayment option in times of need seems very ideal but in recent years, it has been in a lot of scandals due to how the coverage is marketed to the consumers. This is very different from insurance policies that are sold in order to get a mortgage.
The main problem with such insurance is that the lenders sell this to individuals who are not really covered by these kinds of policies. They only find out about it when they are applying for a claim. These people will include people with pre-existing medical conditions, self-employed individuals, retired people, and already unemployed individuals.
There are some lenders that also market this insurance as a way of getting credit even if the insurance is not applicable. Though the said methods are not deemed as illegal, it is still a big question as to why organizations like the FSA do not seem to take the matter seriously.