Loan protection insurance

Loan protection insurance works in a similar way to card protection insurance. It is perhaps a slightly more useful product as the balance on a personal loan is likely to be higher than that of a credit card meaning that if you were made redundant or became to ill to work the debt would be more of a financial problem.

Loan protection insurance can offer short term cover which guarantees a payment each month to pay against your loan if your regular income stops. The amount of the monthly payment and the number of months cover lasts for vary from policy to policy and you will have to pay more for cover for a longer period and higher amount.

You do not have to take out cover when you take out a loan but many lenders will push you to do so. As ever, shop around for the best deal as this is an area where products have been miss-sold. The product can be useful in that having funds to repay a loan in the event of a loss of income can protect your credit rating.

	A guide to life insurance, income protection and critical illness cover Consumers can find it difficult to decide which type of protection to take out depending on if they want to insure their home, job or life. Our guide explain the options.
	The pros and cons of card protection insurance Card protection insurance can apply to credit cards, debit cards or store cards but many experts believe section 75 of the Consumer Credit Act already provides enough cover.
	Is it worth having credit card protection insurance? Credit card protection insurance can provide cover if you lose your credit card or someone commits fraud using your card, but is it worth taking out a separate policy when you may already be covered?
	Sainsbury’s promises to beat competitors’ personal loan rates Sainsbury’s has pledged to beat rivals’ lending rates for customers who successfully apply for a standard personal loan with the supermarket bank.
	Key Protection cover for motor insurance launched by RIAS RIAS has launched its Key Protection cover to help reduce the costs and distress caused when a person loses their house or car keys.