Cheap loan protection insurance could keep you from going into debt if you know how it works and what it doesn't cover, which is true of all policies of this kind. Cover can be an expensive addition to a loan, but it can give you a lot of peace of mind if you buy it right. If you shop around, you can get loan protection insurance for cheap if you buy it on your own.
Loan payment protection insurance is also called ASU insurance. It can give you a tax-free income every month so that you can keep making your monthly loan payments if you lose your job due to an accident, illness, or unemployment that wasn't your fault. The coverage would start paying out after a certain amount of time. Depending on the provider, this could be as early as the 31st day or as late as the 90th day. Once the coverage started, it would give you a tax-free income each month you were out of work for up to 12 months and with some insurers up to 24 months.
Cheap loan protection insurance can be a lifeline because even if you qualify for help from the government, it might not be enough to cover your essential expenses like loan or credit card payments. It can give you peace of mind and security, but it's not right for everyone. The exclusions in the policy's fine print will tell you if it's right for you. Some common things that all policies exclude are people who only work part-time, are retired, are self-employed, or have a medical condition that was already there before they bought the policy.
It's important to get quotes from payment protection specialists, not only to get cheap loan protection insurance premiums but also to take advantage of their experience and make sure a policy fits your needs.
