Do you own a personal loan which also has a Payment Protection Insurance? If the answer is yes then you can get a substantial refund if you select a better protection deal and switch. In case you have both loan and payment protection insurance then you are paying interest not only on the loan but also on the insurance premium.
Read this example to get a better understanding:
A customer with a loan of £7,500 over 5 years could receive a refund of £1500 if they cancelled their loan protection, but kept the loan in place. The refund is a portion of the insurance premium that was charged upfront and added to the loan amount, and can be paid either by reducing the customer’s monthly loan repayments or as a lump-sum refund.
If you move to Lifestyle Protection which is a standalone Payment Protection Insurance policy available through a post office then you are not tied up and there is no need for paying interest on the monthly premiums. It costs quite less and includes monthly outgoings rather than only the loan payment and takes care of all the commitments for the whole year. Remember that being an informed customer can only help you to arrive at the best decisions regarding your finances.
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