If you are looking to apply for a loan or credit card then it would be prudent to also look at loan protection insurance. Loan insurance is subtley different to mortgage payment protection insurance (MPPI) which is designed for mortgages only.
Having loan insurance means that if you became unemployed or unable to work then you would still be able to afford the personal loan repayments. In fact, personal loan insurance can also be used to protect HP payments and credit payments. Loan insurance includes redundancy or unemployment cover as well as accident and sickness protection.
It can seem easier to just take the protection insurance offered by the lender. However, invariably this is the most expensive option to take. Many lenders will add the total cost of your loan insurance policy onto the amount borrowed so you will be paying interest on the loan insurance premiums.
Buying loan payment insurance from a company independent from the loan gives you lots of options. You will be given full details on what the loan policy covers, including all of the small print.
As with all insurances you should shop around and look at different loan protection insurance policies to compare them. These policies base the monthly premiums on the loan repayments, making the cost clear and transparent.