Paying too much for Payment Protection Insurance? Find out about big savings

Added: (Thu Jan 15 2009)

Pressbox (Press Release) - People can save 60% or more say iprotectinsurance.co.uk who want anyone with a Mortgage Payment Protection, Income Protection or Payment Protection Insurance to use their website to find out how. This was the reason they introduced iprotect-free-to-switch that informs customers how to make the choice that is right for them. People can compare their existing premium online and see for themselves how easy it is to achieve savings of £300* or more.
Why Free-to-Switch? Surely it is easy to take out another policy? If fact, there are several pitfalls.
By far the greatest barrier for cancelling an existing policy and taking out a new one, is the usual 120 day unemployment exclusion period imposed on new policies. In other words, nothing adverse can be announced connected with the insured person’s employer (particularly news of future redundancies), within 4 months of taking of a new policy, otherwise any claim for subsequent unemployment will not be paid. Hence, potentially you could pay premium for 4 months for nothing. Therefore it is no surprise people have felt very reluctant to take out a new policy. They have stuck with their existing cover however much more it might cost them each month.
To ensure they remove this very real fear, iprotectinsurance waive the 120 day exclusion entirely for any customer simply seeking to duplicate their existing cover and save money. By answering just 5 questions on line customers know instantly if ipotect-free-to-switch can offer them a seamless transfer of cover. As a further safeguard, when choosing to go ahead, iprotectinsurance still insist existing cover is maintained until eligibility for a low cost option is confirmed in writing. Only when the customer receives their new policy will iprotectinsurance ask them to cancel their existing policy. Even then the person can change their mind within 30 days and still receive their money back in full. This approach is typical of how iprotectinsurance give customers confidence and illustrates how a previously difficult switching process is made as risk free and seamless as possible,
This Mortgage Payment Protection Insurance can meet the full cost of mortgage repayments plus up to a further 25% or other key expenses. It is subject to monthly maximum limit of 65% of the insured person’s gross pay. If they cannot work due to Accident, Sickness or Unemployment, their policy will pay out for up to a year for each valid claim. It stays in force for as long as the monthly premium is paid.
Dennis Haggerty the Marketing Manager for iprotectinsurance.co.uk explained. ”Even though savings of 60% or more can be made, there is a misplaced belief that this sort of insurance can only be taken out with a mortgage lender. This is a myth that commission hungry ‘Advisers’ have been happy to perpetuate over the years. In response to this iprotectinsurance introduced ‘Free to Switch’ a process that explains the benefits for customers to switch providers that is simple, easy to complete on-line and completely risk free.”
Looking at Moneysupermarket.com premium comparison tables, iprotectinsurance products are always somewhere near the top for value. They are able to offer low prices by eliminating the usual costs associated with buying this type of insurance such as commission and an expensive sales force. Business is only done on-line with people who seek them out.
Free-to-switch is solely available from their website. To further encourage visitors, iprotectinsurance have produced free to download Buyers Guide and Top Ten Tips to buying Income Protection, Mortgage Payment Protection and Payment Protection Insurance.
The Competition Commission and regulation by the FSA have now called time on the sales practices of the High Street names selling Payment Protection Insurance and have imposed huge fines on those it considers wanting. Interestingly, the Regulator is now demanding that providers of this type of insurance will need to write to their customers annually informing them of how much they pay. With the FSA now actively promoting people to shop around, it is no surprise that iprotectinsurance want to take full advantage of this new premium comparison focus. They are ambitious to raise the profile of their ‘Free to Switch’ facility. Their timing could not be better as everyone is feeling the need to examine their outgoings. Making it easy to switch cover and save money should win them a lot of new customers.

*Average saving moneysavingexpert.com/mortgages/payment-protection-insurance