UK loan protection insurance has been in existence for many years but has never been as popular as it is today. This popularity could be for many reasons, but only one of them matters. A higher percentage of individuals are in debt today than the figure associated with times gone. The consumer culture that we all live in encourages individuals to spend, and the availability of credit has contributed to that. These two features of society combined have led to a massive rise in demand for UK loan protection insurance.
Whilst the existence of UK loan protection insurance is great for consumers in many ways, the desperate need for it is not. People should be choosing to have UK loan protection insurance because they want peace of mind, and not because they are so scared that they will find themselves in severe financial difficulties should their source of income be cut off.
UK loan protection insurance protects an individual’s loan repayments should he or she fall ill or have an accident and be unable to work, or if he or she lost the job that would have enabled them to pay the debt off in the first place. It is also designed to pay out for up to twelve to twenty-four months after an initial qualifying period has lapsed. This is necessary for individuals in debt, especially those already struggling to pay off debts whilst in full-time employment!
The premiums associated with UK loan protection insurance vary, depending on the level of the loan, the interest rate of the product that you took out, and personal circumstances. Some financial institutions ask for monthly premiums, other annual ones, and then some add the total cots of the UK loan protection insurance to the loan itself. These are all factors and elements that you have to weigh up before taking out the insurance. If that sounds a little confusing then wait until you read the terms and conditions – make sure that you fully understand them before signing on the dotted line.