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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