What You Should Know About Loan Protection

What You Should Know About Loan Protection

What you​ Should Know About Loan Protection
When it​ comes to​ taking out loan protection there are many things that you​ should know .​
For a​ start,​ if​ you​ want the​ best deal and the​ cheapest premium then make sure you​ shop around and buy the​ cover independently from a​ specialist provider .​
The cover will usually be offered to​ you​ - and is​ sometimes included in​ the​ loan without you​ even knowing - if​ you​ take your loan from the​ high street banks and lenders,​ however this is​ the​ dearest way to​ purchase cover and you​ do have options.
The high street lender will have you​ believe that the​ cover is​ compulsory and has to​ be taken alongside your loan,​ this is​ because more often than not they charge high premiums for their cover and of​ course put profits ahead of​ the​ consumer .​
By shopping around,​ you​ can see what policy is​ right for - and at​ what price.
The cover is​ invaluable .​
Loan protection is​ taken out if​ you​ have credit such as​ a​ loan or​ credit card and you​ want to​ ensure that the​ monthly repayments for them could be met if​ you​ were suddenly out of​ work through suffering from a​ prolonged illness,​ accident or​ where you​ were made redundant .​
The cover will usually pay out a​ fixed monthly income for up to​ 12-24 months after you​ have been out of​ work and for a​ specified amount of​ time,​ which is​ usually around 30 days.
Loan protection has taken a​ beating recently though when it​ came to​ light that policies have been mis-sold and some lenders,​ in​ particular the​ high street providers,​ were charging extortionate prices for the​ protection .​
Without a​ doubt the​ cover can be essential and it​ does bring great peace of​ mind,​ but you​ have to​ understand the​ product and what you​ are and are not covered for and,​ indeed,​ the​ exclusions which are found in​ all policies .​
By shopping around for your loan protection insurance you​ can ensure that you​ will get the​ cheapest quote for your premium while buying a​ quality product.

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