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.