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Avoid Debt with a Loan Protection Plan

During recent years, many people have taken out loans for all sorts of reasons.  It might have been to pay for a holiday, maybe to have some sort of home improvements done.  You might have even taken out a loan in order to build an extension on your home which would raise its value.  Perhaps you needed to replace your car and took out a loan in order to buy a decent, relatively new car – something that can save you money on repair bills in the long run.  Whatever the reason for your loan, you might find that in the current economic climate you are struggling to make the repayments and fall into debt.

Perhaps you’ve lost your job or had to accept a pay-freeze in order to help our employer weather the economic downturn.  When you first take out a loan, you’re pretty sure that you can afford the repayments.  However, a loan that involves repayments over several years can end up being an albatross round your neck and you may wish that you’d not bothered with it in the first place!

If you’re looking at borrowing money for whatever reason, one of the most important things you need to consider is a Loan Protection Insurance.  This will protect your monthly repayments in the event that you lose your job, become too sick to work or have some sort of accident that prevents you from working for some time.

None of us borrow money in the expectation that we will not be able to afford the repayments involved.  However more and more people nowadays are finding themselves struggling to meet repayments a few years down the line due to a change in circumstance.

Loan Protection Insurance will give you the peace of mind you need to ensure that whatever the circumstances, you should be able to carry on making repayments without it having too much of an impact on your general finances.

Make sure that if you apply for a loan you also have the foresight to take out Loan Protection Insurance.  Some lenders would lead you to believe that if they are supplying your loan, then they will also supply your LPI.  However, this is not the case – you may take out your Loan Protection Insurance from another provider and it’s really worth shopping around to ensure that you get the best deal.

There are several price comparison websites that you can use when looking for Loan Protection Insurance.  Check them out and see what’s on offer before making a decision.  Make sure that you read the terms and conditions carefully to ensure that you choose a comprehensive level of cover that will protect you in a range of situations.  Don’t go for the cheapest – you might find that it doesn’t cover you under certain circumstances.  Sometimes it’s worth paying a little extra to get the best service available.  Do your research, take notes and then have a really good think about it.  When you’ve narrowed down your options to a small number of providers, call them and ask questions that are relevant to your individual circumstances.  Very often, during the phone call, they will offer some extra “sweetener” in order to close the deal.  This may mean that you get the best level of cover available at a really affordable price.