Loan
insurance protection
Why do you need loan insurance
protection?
If you have a personal loan,
secured loan or a car loan you will
still be responsible for the loan repayments if
you are unable to work. This could be because of
accident, sickness or redundancy.
Having
loan insurance protection means that the
loan payments will be made when you cannot work.
This avoids loan arrears and possibly spoiling
your credit history. If you pick up bad credit
then it will be harder to obtain loans and
mortgages in the future and you may have to pay
a higher interest rate.
Loan protection insurance policies allow
you to select the level of monthly cover you
require to match your loan. You can also choose
to have disability cover, redundancy cover or
both. Choosing both will increase the cost of
the loan policy but gives you greater
protection.
It is well known that buying
loan insurance protection from the loan company
costs more. This is because they do not need to
be competitive and they take a large amount of
the premium as a commission for themselves.
Much better to seek out an
independent loan insurance policy for cheaper
monthly premiums.
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