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.

	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?
	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.
	Sainsbury's Finance reveals new personal loan rate A new personal loan rate has been announced by Sainsbury's Finance for customers who borrow between £7,500 and £14,999.
	Payment Protection Insurance: Waste of money or essential protection? Ask anyone with loans or mortgages for their opinion on payment protection insurance (PPI) and you are likely to be met with a sharp intake of breath.