UK Loan Insurance

Payment protection insurance

Lenders offer insurance to cover you in the event of ill health, unemployment etc.

Payment protection insurance is available for either secured personal loan/home owner loans or unsecured loans.

The terms of this type of cover will vary greatly so check the small print.

Think of some of the things that may happen to prevent you paying back the loan and ask the lender whether their insurance would cover you for each one.

Make sure you're not already covered for the various things through another insurance policy. (It should be easy to call your other insurers and ask).

Some lenders might give you lower rates of interest if you take out this kind of insurance with them.

However, when added to your repayments, it's unlikely it'll be cheaper than not taking it out at all.

Shop around for this type of insurance as you're bound to find something cheaper if it's not "bundled" with the loan ie not being offered by the same people as are arranging your loan

Bear in mind that experts tend to say these policies are a waste of money.