Getting the best loan insurance
How do you get the best loan insurance?
Generally speaking, the worst place to buy loan insurance from is the personal loan company. Whilst they might encourage you to take up their loan insurance cover it is likely to be very poor value for money.
Loan insurance policies provided by lenders are loaded with high amounts of commission, this can be 40-60% of the premiums that you pay! Unsurprisingly, the company will want you to buy their loan insurance, and the reason is very simple to see.
A much better option is to buy an independent personal loan insurance policy.
Independent providers of personal loan insurance need to provide loan insurance policies that:
- have competitive premiums
- have good quality cover
- are easy to understand
- are easy to apply for
This competition drives up the quality of the cover and drives down the premiums. These types of policy are great value for money and so much cheaper than loan insurance from your bank or finance company.
One added advantage of buying an independent personal loan insurance is that you are in control. You can decide to change the policy if you need to, or stop it when your loan is paid off.
