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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. |
