About Loan
Protection Insurance
When you apply for a loan there is a good chance
that you will also be offered loan protection
insurance.
Personal loan insurance is
designed to meet your loan repayments for a
period of 12 months or more in the event that
you are unable to work due to accident, sickness
and involuntary unemployment.
If
personal
loan insurance meets your needs and is
suitable for your particular circumstance then
it is probably a good insurance to have. However
think carefully about the terms and the costs.
Getting the best deal on your personal loan
could be spoilt by paying more than you need for
the add on loan protection insurance cover from
the loan company. What would be worse would be
to pay for cover which was not totally suitable
for your needs.
You may well have chosen your
loan company because they were a specialist in
that area of finance. Being a specialist in
arranging or providing loans does not
necessarily make them a specialist in personal
loan insurance products even if those insurance
products are connected to the loan.
Most lenders will not tie you
to purchasing their loan protection product so
you could be free to shop around and get
cheaper
loan insurance.
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