The policy is available through its website: www.shelter.co.uk, which claims to be an antidote for single premium products where consumers have up to a five year payment protection insurance fee added to the cost of their loan and then interest is charged on both what’s borrowed and the premium.
With shelter.co.uk, consumers pay an interest-free monthly premium of £5 per £100 of cover provided, a back to day-one pay-out if the claimant has been unemployed or disabled for more than 30 days and crucially, together with an option to cancel, provided 30 days notice is given.
Lenders are currently offering single premium insurance, for the same type of risk, at around £8 to £9 per £100 of cover plus interest costs because payments are front loaded.
Simon Burgess, managing director of britishinsurance.com, commented: “I’m redressing the in-balance where lenders appear to have the power instead of the consumers. Too often, providers are unwilling to make a long-term commitment on the policies they offer – we’ve all heard horror stories of cover being withdrawn leaving people high and dry.
“With shelter.co.uk this won’t happen. The five year guarantee demonstrates our commitment to provide competitively-priced products that work to the advantage of the consumer. shelter.co.uk offers stability and fairer premiums. People should be shopping around for their payment protection cover in the same way they do their other insurances.”
Eric Galbraith, chief executive of the British Insurance Brokers’ Association, said: “There are good protection products available in the market from brokers who are pushing hard to give the consumer fair priced PPI products that work to their advantage. shelter.co.uk is another example of this and the more brokers can get clients to shop around for protection as they do for other insurances, the more they can show them what the market truly has to offer.”
