Almost every borrower would be well advised to avail themselves of some type of loan insurance. It just makes no real sense to take on a significant level of debt and not protect yourself from the downside of becoming sick or unemployed and not being able to make your loan repayments each month. Being buried in debt, with no way to pay it off, can ruin your life, it is just not worth taking the risk.
Loan insurance is not expensive, and it really needs to be seen as an utter necessity by any person who is taking on any level of debt. Nobody can be sure what the future holds for them, you never know if you will hit a bump at the next turn, it just makes perfect sense to make sure you have protected yourself by taking out a loan insurance policy. The government is becoming more and more concerned over the increasing level of default debt in the UK, and are demanding that lenders offer well priced and effective loan insurance products to their borrowers. This means that with a little bit of research, you should be able to find a fantastic deal on loan insurance, buying you peace of mind in the process.
What does Loan Insurance Cover?
The best known and most standardised form of loan insurance is the ASU, this is an insurance product designed to provide the following cover:
- Accident – If you are unlucky enough to fall foul of a serious accident, which sees you unable to make your monthly loan repayments, then the insurance policy will either make the loan repayment in full, or cover your payments until your period of disability comes to an end
- Sickness – Illness can be a major cause of debt problems, a sickness policy will ensure that your loan repayments are kept even if you are too sick to work
- Unemployment – Losing your job is a stressful experience, made doubly so by any debt you may have, a loan insurance policy makes sure that your repayments are covered if you are unemployed
This is a very simple description of the major components of a loan insurance policy. It should be noted that providers will often offer policies that can consists of one or more of these features, for example an AS policy would only cover accident and sickness and would be taken up by a person who already has some form of unemployment cover.
Over the last several years, we have begun to see insurance providers offer a life type product as part of the ASU package, this new type of product, the LASU adds life cover to the original ASU, this ensures that the loan is paid in full on the advent of your death, along with providing other features of a life insurance policy.
Enhanced Wealth offer loan insurance from British Insurance. Visit the loan insurance page here http://enhancedwealth.co.uk/asu/loanprotect/index.htm