Loan Insurance: What is it?

Loan insurance in the UK covers a person’s loan in the event that they are unable to make loan payments because of illness, accident, disability or sudden unemployment. Not all policies are the same, so make sure to shop around in order to find what you need.

Some of the unfortunate circumstances that can be covered include: cancer, death, permanent disability and hospitilisation. Insurance usually covers monthly loan payments for a certain amount of time and the coverage can even continue until the loan is paid off in its entirety.

Protect your payments

It is very important to take out payment protection when you get a loan.

With only a small increase in your monthly repayments, you can rest assured that in the event of unemployment, sickness, or hospitalization, your loan repayments will be made. Today, you can no longer rely on having the same job for your whole career. And it can be very difficult to find another job quickly if you suddenly become unemployed.

If you are unfortunate enough to have to deal with redundancy the last thing you need to worry about is your loan. When it comes to good health, everybody knows someone who had to suffer a serious illness.

If you become ill and cannot pay back your loan, it is worth it to have insurance coverage. Many of the policies we offer include free life assurance but please note that redundancy cover does not apply to those who are self-employed, but some lenders do offer good alternatives, such as hospitalization cover. All policies allow you to insure all applicants for all benefits where applicable.
What to do

Sometimes loan insurance policies can seem complicated.

But they don’t have to be. Just take the time to carefully read all documentation and to know what the policy does and doesn’t cover. Get the type of loan insurance that suits your needs and life circumstances. Loan insurance is definitely worth your while if you are thinking of getting a loan because it allows you to take out a loan worry free.

Just note that you cannot receive loan insurance for an already existing condition or circumstance. Know that your claim could be rejected if you cannot work due to an existing condition. Usually you have to wait a few months after receiving loan insurance to make a claim, so you are covered very soon after applying. You won’t have to wait long to rest easy. Loan insurance can provide you with the peace of mind that you deserve.

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