Loan Payment Protection Insurance, Personal Loan Insurance UK

Your lender may insist that you take out a loan protection insurance policy alongside any loan that you arrange. The loan protection insurance policy will cover the repayment of the loan in the event of your inability to make the repayments either through death or loss of earnings but it will not let you just walk away from the debt.

Loan insurance is not cheap and may add a substantial amount to the cost of your loan. It is easily possible that an otherwise attractive interest rate deal may actually cost you more on a monthly basis than a loan charging a higher rate because of the insurance charges. Some lenders insist on loan insurance others are prepared to be flexible.

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2009-02-17 00:00:00 © Moneyextra.com