Loan insurance policy sales on the up
The last few months have seen an increase in sales of loan insurance policies. As the economy declines, unemployment is rising and jobs are no longer safe. People quite rightly are looking to protect their incomes, their loans and their mortgages.
Loan insurance cover comprises of three elements:
- accident
- sickness
- unemployment
Loan insurance policies are generically accident, sickness and unemployment (ASU) policies. They are similar in basic makeup to income protection, unemployment insurance and mortgage payment protection insurance policies.
Loan policies are designed to cover the monthly loan repayments should you suffer an accident, sickness or unemployment. People are most worried about redundancy as it can be difficult to find new employment. Should unemployment strike the cheap loan insurance policy will pay your loan payments for up to 12 months, giving you time to get back on your feet.
Getting cheap loan insurance
You need to buy insurance to protect your loan but you want to find cheap loan insurance to ensure value for money.
You may well have been offered loan insurance from your loan or finance provider. If you compare this loan policy to others you will find that it is considerably dearer. The main reason for this is your loan company does not have to compete with anyone for loan insurance. They rely on people just taking up their offer and not bothering to spend just a few minutes searching for a cheaper alternative insurance policy.
Cheap loan insurance policies protect your personal loan against:
- Accident
- Sickness
- Unemployment
Should you experience one of these events which then stops you working you can claim under your loan policy to have the monthly personal loan repayments paid. Cheap loan insurance policies will generally make these payments for a maximum of 12 months. After this the payments will stop. Hopefully this will give you some breathing space without the worry of having to pay your loan.
Cheap loan insurance doesn’t necessarily mean cheap cover. Providers of personal loan insurance need to provide good quality cover at the right price to attract your business, unlike your loan company.
