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Hot Topics
- What is a Car Loan?
- There are three different types of car loan. We have covered them here to make you aware of the options open to you when seeking a car loan:
- What if I want to pay my Loan off early ?
- Before agreeing to your loan, read the terms and conditions of the agreement. Some loans allow you to pay your loan off early without any penalties, however, some don't.
- Should I get Personal Loan Payment Protection Insurance?
- When you apply for a loan, you will be asked at the initial stages if you want personal loan insurance to be included in the agreement
- Can I cancel my loan application if I decide not to go ahead for any reason?
- If you decide you want to cancel your loan application once you have made it, you can do so within a certain period of time set by the loan company.
- What happens if I can't meet the loan repayments?
- If you are having problems repaying the loan, you will need to talk to your lender straight away to discuss the problem.
Should I get Personal Loan Payment Protection Insurance?
When you apply for a loan, you will be asked at the initial stages if you want personal loan insurance to be included in the agreement.
This will increase your payments by a noticeable amount, however it does mean that if you are unable to meet the monthly repayments, you may be covered by your insurance scheme, thus giving you and your family peace of mind that your payments will still be met.
A Loan insurance policy covers your personal loan if you are unable to work because of illness, accident or disability, or you become involuntarily unemployed. Different loan insurance providers offer different types of cover, so you can choose just accident and sickness, or just unemployment cover, for example. The policy covers your usual monthly repayments that you make to your lender, however most loan insurance polices stop paying out after a set period, normally 12 months. However that depends on the policy, others carry on paying until the loan is paid off and not just for a limited period.
It is very important that you read the loan insurance policy document carefully to make sure you understand exactly what you’re covered for, and more importantly what’s not covered. When you buy the insurance policy they should explain the important cover details and draw your attention to any important or unusual points, however, you cannot depend on this.
When your loan insurance policy starts, you won’t normally be able to claim straight away - you may have to wait a few weeks or a month or two depending on the policy terms and conditions.
The alternative to personal loan insurance is Short-term Income Protection Insurance - this protects you in the advent of sickness, accident, death or unemployment. Many people use this type of insurance to cover rent, loan repayments and household bills. You may be able get a cheaper deal by seeking out your own income protection policy rather than accepting the terms of the insurance offered by your loan provider.
For Short Term Income Protection
Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.
- Mortgage defaults or arrears ?
- Is there a way to get a debt consolidation loan that does not require offering your house as security or a way to get a debt consolidation loan if you do not own a house?
- Why would my Loan application be turned down?
- What is a tenant loan ?
- How quickly can i get the money ?
- What is a secured loan ?
- How much can i borrow ?
- Can I take the payment protection off/on throughout my loan?
- What is a Loan to Value (LTV) Ratio?
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