Understanding Loan Insurance Policies

Understanding Loan Insurance Policies



Understanding Loan Insurance Policies
A loan insurance policy is​ also known as​ loan payment protection insurance or​ ASU insurance (which is​ accident sickness and unemployment insurance) and it​ can,​ providing your circumstances are right,​ provide you​ with a​ monthly tax free sum of​ money with which to​ continue meeting your loan or​ credit card repayments if​ you​ find yourself unable to​ work due to​ accident,​ long term sickness or​ unforeseen unemployment.
For a​ fixed monthly premium you​ can take out loan insurance policies to​ cover against the​ possibility that you​ might lose your income and be struggling to​ make your monthly loan or​ credit card repayments .​
a​ policy would begin to​ kick in​ and pay out once you​ had been out of​ work usually for 30 days or​ more and would continue to​ pay out for a​ period of​ up to​ 12 months - with some providers’ policies,​ up to​ 24 months.
This will give you​ adequate time to​ get back on​ your feet or​ find work.
The best way to​ purchase loan insurance is​ to​ buy it​ independently rather than alongside the​ loan when you​ take out the​ loan .​
While purchasing the​ cover alongside the​ loan is​ the​ easiest way to​ take the​ cover it​ is​ also the​ dearest,​ as​ high street banks and lenders charge notoriously high premiums for the​ cover in​ order to​ make big profits .​
However,​ there is​ another possibility when it​ comes to​ taking the​ cover and that is​ to​ go to​ a​ standalone provider .​
They will more often than not offer the​ cheapest premiums for loan insurance policies.
Loan cover can be taken out just to​ guard against accident and sickness only,​ unemployment only or​ to​ cover accident,​ sickness and unemployment .​
You have to​ make this clear at​ the​ outset when it​ comes to​ buying the​ loan insurance to​ ensure that you​ get the​ protection you​ need.




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