Loan protection can give peace of mind
- 7TH NOVEMBER 2007
If you were to become unable to work if you should be unfortunate enough to have an accident, suffer from a sickness or be made unemployed and therefore lose your income, then you could be left struggling when it comes to finding the money to continue meeting your monthly loan or credit cards repayments. However, providing a policy is suited to your circumstances then loan protection can give peace of mind and the income to stop you from getting into debt and so ease the worry.
Loan protection or ASU insurance as the product is also called will pay you a pre-agreed monthly amount once you have been out of work for a set period of time which is determined at the outset and can be between 31 and 90 days of being out of work. Cover can then continue to pay you a tax free income for between 12 and 24 months. In the case of a policy being taken out with independent specialist British Insurance this is from the 31st day, backdated to the first day of your claim, and then continues for up to 12 months.
However if you have an illness which is ongoing, you are retired, self-employed or only working part time then a loan protection policy would probably not be any use to you due to you being ineligible to claim.
Because of these exclusions it is imperative that you read the small print as this is where the exclusions and terms and conditions can be found. An ethical standalone specialist in loan protection such as British Insurance will give you this information before you buy and this is the ideal way to purchase the insurance with the exclusions in mind.
