What is Loan Protection
Loan Protection is an insurance policy you take out to help you pay your monthly loan repayments if accident, sickness or unemployment should cause you to lose your income. You simply use your Loan Protection Insurance to cover the monthly amount you pay for the loan and then cancel your insurance policy when the loan is paid off.
Why do I need Loan Protection?
Many people do not think what might happen if they were to suddenly lose their income. Those that do consider Mortgage Payment Protection but quite often do not consider their Loan repayments and this could be for a single specific loan, such as a car or bank loan, or for monthly repayments on your credit card. If you lose your income you will still be expected to continue these monthly payments so Loan Protection Insurance will ensure you can continue to pay them until you can get back to work.
Is Loan Protection worth having?
If you do not have savings put aside to tide you over if you were to lose your income then you would be wise to consider Loan Payment Protection. To find out if you do need it you should add together all your monthly outgoings and then see if your savings would continue to pay those monthly outgoings in the event you might be without income for several months. If you consider that your savings are not sufficient then Loan Protection Insurance can safeguard the loan you may have taken on your car or continue to pay the bank loan that is still outstanding.
When should I buy Loan Protection Insurance?
You must have a loan in place to take out Loan Protection Insurance. However there are exclusion periods attached to these types of payment protection products that state you are not eligible to claim if either before, or during a set period of time from the start date, you were aware of impending redundancy. So it is important to get Loan Protection before you become aware of any potential redundancy.
Our policies are annually renewable guaranteeing no premium rate rise within a full year
