Whilst many of us have mortgages that will span over a period of thirty years, there are also many of us who don’t have a loan protection policy in place.
Whether it’s because we’re not aware that it exists or we’ve heard about it but don’t really understand what it is and therefore don’t see the need in protecting a loan, there are many benefits in spending the money to protect your loan.
When is it needed?
Payment protection insurance (PPI) or commonly known as loan protection is a type of insurance cover put in place to assist you and your family, in the event of unforeseen circumstances such as illness where you can’t afford to keep paying the loan.
If you or someone you know are left unemployed, income protection is another type of insurance policy, covering the loss of income and in some instances (depending on the insurance provider) also covering mortgage repayments.
Real estate is one of the most valuable assets people own and some, work most of their lives to be able to have it. Knowing their loan is protected gives mortgage holders added peace of mind if they’re unable to keep making payments.
If you’d like to find out more about loan protection, consult with a broker. We can arm you with knowledge that enables you to make a more informed decision.
Reference: Loan Market 2017