If you've ever gone to a high street bank or lender and asked for a loan, you were definitely offered loan protection during the interview. Most people turn it down right away, either because they think it's too expensive or because they don't understand it.
Even though some of the providers aren't worth considering, the product as a whole is, because loan cover is the only thing that can give you peace of mind if something goes wrong.
In fact, loan cover can be like a gift from the gods if a person loses their job before the loan is paid off. Without a job, it's hard enough to pay the bills, let alone make the payments you've promised to make on your debts. If a person isn't careful, this could lead to CCJs, a lot of debt, or even bankruptcy. But loan cover can stop all of that from happening by covering the payments on the amount of money you still owe for up to twelve to twenty-four months, or until you find steady work that lets you pay your bills again.
A high street bank or lender will often offer loan cover along with a loan. This may not always be the best deal for you, though. Most providers on the high street will add the total cost of loan cover or the terms of the loan to the loan amount itself. This makes the loan subject to interest and very hard to cancel if you decide you no longer want it. This doesn't give the consumer much for their money.
If you go to a standalone provider for loan coverage, you will usually save hundreds of pounds in premiums over the life of the loan.
