When you apply for a personal loan, car loan or HP the finance company will invariably try to sell you some kind of loan insurance or loan protection policy. They want you to take the cover out because it is overpriced and they earn commission from every policy sold.
Firstly, you do not have to take out the loan insurance policy offered. Check the loan quotation and paperwork very carefully. Is it included within the monthly payment?
If you feel that protecting your loan payments is important then you could buy loan insurance separately and this is normally a much cheaper way of protecting the loan repayments.
We offer a loan payment protection policy from British Insurance which is great value for money. You can quote and buy online in just a few minutes. Our clients have saved considerable amounts of money by buying their loan insurance policy independently of the loan itself.