Why buy loan insurance?

Why should you buy loan insurance?

If you apply for a personal loan, hire purchase or finance agreement you are more than likely to be offered insurance to cover the loan repayments. This loan insurance will cover you against accident, sickness and unemployment but may also include death or critical illness.

The loan insurance policies offered by finance and loan companies are very expensive as you are a captive market. Very few people who apply for a loan will bother to see if the insurance cover is available at a cheaper price elsewhere. The loan company want you to have the cover as the earn a nice commission for each loan policy sold.

Buying loan insurance does make sense. You are protecting the personal loan payments in case you are unable to work. However, it makes even more sense to spend some time researching loan insurance to see what independent policies are available. Invariably, these will be much cheaper than the policies offered with the loan or finance package.

We offer loan insurance from British Insurance Limited who provide good quality insurance cover at reasonable prices. For more information please visit our loan insurance page http://www.enhancedwealth.co.uk/loaninsurance.htm