locked in an incredible rate with a lender for a major loan. Perhaps you’re purchasing a home or funding your child’s education. Either way, this loan is going to make a huge difference in your life and the lives of your family. Then the unthinkable happens. You are made redundant or suffer a debilitating accident. How will you continue to make payments on your loan when your main source of income has disappeared or been significantly reduced?
Loan protection insurance is a way to make sure that you will always be able to meet your major financial obligations no matter what your employment status may be. From mortgages to personal loans to household expenses, loan protection insurance will allow you to always maintain your standard of living.
Loan protection is particularly useful for mortgage payments and other long-term loans. Frequently, lenders frown on missed or incomplete payments. A single missed payment can result in foreclosure or a significant reduction in your credit ranking. Having a guarantee that you will always be able to make your mortgage payment functions as a wise financial move. In an economic time when people are regularly being made redundant, there is no “safe” industry. Having a sensible plan will give you a much greater peace of mind.
Loan Protection Insurance
As a form of income protection insurance, loan insurance enables you to always provide for the people who are most important to you no matter what happens in the larger economy. Children in particular benefit from a stable environment. Many parents save for years in order to be able to afford to send their children to elite schools. Guaranteeing a child’s future is priceless. If you have undertaken a loan in order to send your child to school, loan protection insurance will help you maintain that loan regardless of your personal circumstances.
Those who have suffered through an accident know that their overall earning power can be rapidly diminished. In such an instance, loan protection insurance can act as a financial supplement while you make a full recovery. Keeping the bills paid makes life easier and reduces unnecessary stress.
Tax Free Benefits
As an added bonus, the benefits you receive from your loan protection insurance are tax free. In order to qualify for this tax exempt status, the premium payments of the policy must be paid with taxable income.