The Post Office has taken the brave move of getting into the much-maligned payment protection racket market.
Their Lifestyle Protection policy has been launched, which will cover all loan payments for up to 12 months if the policy holder is unable to work because of an accident, illness, or unemployment. Loan repayments for credit cards and loans will be covered as long as monthly payments are under £2,500 or 60 per cent of the policy-holder’s salary.
Reaction to the product have been mixed – on one hand, it provides a cheaper alternative to lenders rip-off rates for payment protection, but you need to check what it will cover you for. For example, the major causes of sickness absence from work are backache and stress-related complaints. Although the Post Office Lifestyle policy covers these conditions, it only pays out once they are diagnosed by a consultant, which could take a while, and during this time you will not receive any benefit from the policy.