“We are experiencing increasing numbers of our site users having their claims rejected, invariably because of technicalities arising from the small print,” said Moneynet chief executive Richard Brown.
“Most vulnerable are the self-employed and short term contract workers as many policies discriminate against this profile of worker. Therefore, it’s crucial to check the policy details before signing up,” he advised.
“Mortgage protection insurance tends to be very popular at times of economic uncertainty, and many people may feel panicked into taking out cover with unemployment figures rising. But, when bought from High Street lenders, this cover can be expensive and the policies may not cover all eventualities.”
Brown also warned against personal loan borrowers wanting to pay off loans early and then finding that their PPI cover is non-refundable.
“Many borrowers are obliged to pay up front for their PPI cover, and then find that the insurance is non-refundable, which means that even if a well- intentioned borrower wants to clear the loan early, he or she will be out of pocket with the insurance premiums paid up front.”
