The UK has had loan protection insurance for a long time, but it has never been as popular as it is now. There are many possible reasons for this, but only one of them matters. People have more debt now than they did in the past. The consumer culture we all live in encourages people to spend, and the fact that credit is easy to get has only made that easier. Together, these two things about UK society have caused a huge rise in the number of people who want loan protection insurance.
UK loan protection insurance is good for consumers in many ways, but the fact that they need it so badly is not one of them. People should get UK loan protection insurance because they want peace of mind, not because they are afraid that losing their source of income will put them in a lot of trouble financially.
UK loan protection insurance covers a person's loan payments if he or she gets sick or hurt and can't work, or if he or she loses the job that would have allowed them to pay off the loan in the first place. It is also set up to pay out for up to twelve to twenty-four months after an initial qualifying period. This is a must for people with debt, especially those who are already struggling to pay off debts while working full time.
UK loan protection insurance has different premiums that depend on the size of the loan, the interest rate of the product you took out, and your personal situation. Some financial institutions ask for monthly or annual premiums, while others add the total cost of the UK loan protection insurance to the loan itself. All of these are things you have to think about and weigh before getting insurance. If that sounds confusing, wait until you read the terms and conditions. Make sure you fully understand them before signing on the dotted line.
