The Ins And Outs Of Loan Payment Protection Insurance

The Ins And Outs Of Loan Payment Protection Insurance



The Ins And Outs Of Loan Payment Protection Insurance
Loan payment protection insurance is​ sold under different names including loan cover,​ loan protection,​ loan insurance and ASU insurance .​
Whatever the​ name,​ it​ does the​ same thing and that is​ it​ will cover your loan repayments up to​ a​ predetermined amount if​ you​ should lose your income by being out of​ work through accident,​ long term sickness or​ unemployment .​
However,​ loan payment protection insurance isn’t suitable for everyone as​ there are exclusions which could stop you​ from making a​ claim which many who bought their cover either knowingly or​ unknowingly found they were mis-sold their policy after taking it​ alongside their loan from the​ high street lender .​
If you​ want the​ safety net that loan payment protection insurance can give then it​ is​ essential that you​ purchase the​ cover wisely and understand the​ many exclusions which can stop you​ from claming on​ the​ policy .​
It is​ also essential that you​ realise that premiums for the​ cover do vary widely from provider to​ provider and this can end up adding thousands onto the​ cost of​ the​ loan and turn what was a​ cheap loan into a​ very expensive one after the​ cost of​ the​ protection is​ added onto it .​
A specialist standalone provider will typically be able to​ provide the​ cheapest loan payment protection insurance premiums for a​ quality product and your peace of​ mind .​
Historically,​ the​ high street banks and lenders charge way over the​ odds for loan payment protection insurance,​ that is​ why it​ is​ important that you​ shop around for the​ cover.
It can give you​ valuable peace of​ mind and stop you​ from getting into serious debt problems if​ you​ didn’t have the​ money to​ meet your monthly loan repayments .​
It does however have to​ be given careful consideration that it​ does meet your circumstances,​ if​ you​ are self-employed,​ retired or​ suffer from a​ pre-existing medical condition that would keep you​ off work then a​ loan payment protection insurance policy probably wouldn’t be in​ your best interests.




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