If you have monthly loan payments and are worried about how you would pay them if you suddenly lost your income because of an accident, illness, or losing your job, then loan protection insurance is the answer.
With the money from a loan protection insurance policy, you could keep making your monthly loan payments even if you were out of work for a certain amount of time. Depending on the provider, you may not be able to file a claim until the 31st day or the 90th day of being out of work. After that, most policies are backdated to the first day. Once the policy has started, it will continue to pay you tax-free income for up to 12 months, and with some providers, for up to 24 months.
All loan protection insurance policies have situations in which you can't make a claim. Some of the most common are if you're sick or have been sick in the last two years, if you're retired, or if you only work part time. Check the exclusions of any loan protection insurance policy you're interested in, as they can be slightly different from one provider to the next.
Loan payment protection insurance can help to stop you from getting into debt and the best way to purchase the cover is with a standalone provider who can not only offer you some of the cheapest premiums for the cover but also the advice that you need to be able to make an informed decision regarding the suitability of loan protection insurance for your circumstances before you buy the product. If you're not sure if the policy is right for you, always take advantage of the expert's knowledge and ask questions.
