Insurance that covers your loan repayments is called loan payment insurance. It goes by other names as well, including loan protection, loan cover, ASU insurance, and loan insurance. No matter what you call it, it essentially does the same thing and it will pay your loan repayments up to a certain amount if you lose your job, or your income is lost due to an accident or long term illness.
There are some situations where loan payment protection insurance would not be suitable. The exclusions that can stop you from making a claim can make the policy not worth the cost, which is why you want to carefully choose your policy. They vary from provider to provider in cost and in the terms and conditions of the insurance policy. The safety net that loan protection insurance offers can be a financial lifesaver, if you have need of it.
Make a Careful Choice
Your loan provider will be able to give you some loan payment protection insurance premium quotes to allow you to find one that you can afford. It is important to note that this will add to the payments that you are making. Big banks and lenders typically overcharge for loan protection insurance, which is why you want to shop around for your loan and for your payment protection insurance coverage.
To be sure that you can take advantage of the peace and mind that a loan insurance policy can give you if you happen to have serious financial issues, you want to be sure that you make the right choice in policy. Read through the terms and conditions to be sure that it meets your own circumstances to ensure that it will meet your needs if you have need of it. Loan protection insurance can be a smart choice, if you are willing to put in the time and effort to find the right policy for your loan and your particular needs.