When it comes to purchasing loan protection then you have to consider it very carefully and be aware that there are exclusions within a policy that could stop you from being eligible to claim. For those who would be eligible to claim then loan protection is invaluable when it comes to protecting against the possibility that you might find yourself out of work.
If you have monthly loan repayments to make and are in full time work then it could be worthwhile taking out loan protection to give you the peace of mind that you would be able to continue meeting them if through accident, sickness or unemployment you have to come out of work. Providing you have been out of work for 30 days or more than a policy would give you a fixed tax free income with which to continue meeting your loan repayments without having to struggle to find the money.
The loan protection insurance would continue to pay out for up to 12 months if needed and with some providers, for up to 24 months. You can choose to take loan protection to guard against accident and sickness only, unemployment only or for accident, sickness and unemployment together.
Quotes for the loan protection and the peace of mind it brings do vary widely depending on where you get your quotes and in order to make a fair comparison you do have to get several quotes. This however is easier if you go to standalone providers rather than the high street banks and lenders, when you shop around. Standalone loan protection providers will usually get the lowest premiums available on loan protection while securing a quality product. And, providing you have read the small print and the exclusions and know you are able to claim loan protection, it can be your lifeline if the worst should happen.