Loan protection insurance

Protect your debt repayments – compare loan protection insurance[1]

What is loan protection insurance?

It’s a form of income protection that can cover your debt repayments if you're unable to work.

It’s sometimes known as loan payment protection insurance and policies can cover you for accident and sickness or unemployment. You can also find policies that cover you for all these eventualities.

How does it work?

If you find yourself unable to work, a loan protection insurance policy will pay out monthly benefits directly to you.

Whereas payment protection insurance (PPI) will typically be attached to one debt, you can use loan protection to pay off any debt you choose, whether it’s your mortgage or credit card repayments.

You can protect up to 70% of your gross annual income and payouts will normally be tax free. However, this will mean higher premiums, so only choose what you can comfortably afford.

Do I need the cover?

It completely depends on your financial situation. If you would struggle to make your minimum loan repayments without your salary, you may want to consider it.

loan protection

How to get loan protection cover

It’s straightforward to get the right policy for your needs

  1. What do you want to protect?

    Simply specify what you want to protect. This could be your loan, credit card or mortgage repayments. You can also choose an amount by picking ‘other’

  2. Choose your term

    How long do you want your protection to last for? This could be a set number of years

  3. Fill in your personal details

    This is the easy part. Just tell us a little about yourself and we’ll help you find the right policy

How to find cheap loan protection insurance

  1. Compare your options

    Don’t just choose the first policy that comes along. Shop around to find one that suits your budget

  2. Check your policy

    You may be in a position where you can change your cover or cancel it completely

  3. Choose the right cover

    It may be tempting to choose the highest amount you can but it’s not always necessary and you’ll end up paying higher monthly premiums

  4. Delay your payouts

    You may see premiums reduce if you increase your deferred period by a few months

Prepare for the unexpected with loan protection insurance

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