Is loan insurance worth the money?

You will certainly be offered loan insurance from your loan or finance company when you apply. These companies receive large commission payments for each policy sold so they will push hard and encourage you to buy. Unfortunately, the quality of this cover is not always very good and frequently is overpriced.

So if you want loan insurance where should you buy from?

There are specialist insurance providers who offer loan insurance policies. These plans will be independent from your loan arrangements making them very flexible as the cover can be changed or even stopped. An independent provider of loan insurance will need to make sure their policy is competitive and keenly priced. They are afterall in competition with other companies offering the same product.

A search on Google for “loan insurance” or “loan payment insurance” should bring up numerous companies that you can choose from.

What does loan insurance offer?

The main aim of loan insurance is to cover your regular loan repayments in the event of accident, sickness or unemployment. In the event of a claim your payments will be covered for up to 12 months. Loan insurance policies are renewed automatically each year so you always have cover in place.