Nothing in life is certain except death and taxes and that is why many people take loan payment protection insurance when they take out a loan.

Loan payment protection insurance will meet your debt repayments, typically for up to a year, in the event of you not being able to work due to redundancy, illness or disability.

However, many people who are looking for a loan – particularly those with a cash back element where a percentage of PPI premiums are paid back to the borrower when the loan completes - are duped in to taking out expensive cover.

Protection insurance from lenders is more expensive than that offered by independent providers such as BritishInsurance.com. Recent research from the company showed that their premiums tended to cost a fifth of the average price charged by the top ten lenders.

Hefty payment protection charges is the way that lenders make their money. So while they may offer an attractive cash back deal on a loan, the borrower has to take out their often over-priced loan protection product.

This could add literally hundreds of pounds extra to the cost of the loan, meaning that the ‘good deal’ isn’t so good after all.

So, don’t be forced in to taking a lender’s protection product – shop around for standalone cover which is much better value and will save you hundreds of pounds.

Nothing in life is certain except death and taxes and that is why many people take loan payment protection insurance when they take out a loan.

Loan payment protection insurance will meet your debt repayments, typically for up to a year, in the event of you not being able to work due to redundancy, illness or disability.

However, many people who are looking for a loan – particularly those with a cash back element where a percentage of PPI premiums are paid back to the borrower when the loan completes - are duped in to taking out expensive cover.

Protection insurance from lenders is more expensive than that offered by independent providers such as BritishInsurance.com. Recent research from the company showed that their premiums tended to cost a fifth of the average price charged by the top ten lenders.

Hefty payment protection charges is the way that lenders make their money. So while they may offer an attractive cash back deal on a loan, the borrower has to take out their often over-priced loan protection product.

This could add literally hundreds of pounds extra to the cost of the loan, meaning that the ‘good deal’ isn’t so good after all.

So, don’t be forced in to taking a lender’s protection product – shop around for standalone cover which is much better value and will save you hundreds of pounds.