|
You can always buy Loan Payment Protection Insurance as a separate transaction to the loan itself. These policies are paid monthly and if you subsequently decide that you do not want to continue with the insurance cover, all you do is contact your insurer and cancel your direct debit. What's more, you will find that besides being far more flexible, stand alone Loan Payment Protection Insurance is the cheapest way to buy this sort of insurance cover.
When you took out your loan, the odds are that the lender will have offered you Payment Protection Insurance as an optional extra. If you accepted their offer, it is likely that the lender will have calculated the cost of the insurance to cover the full term of the loan and added this cost to the sum of money you borrowed. In practice then, the value of your loan was the money you borrowed plus the full cost of the insurance. In these circumstances you cannot cancel the insurance as you have already paid for it in full.
Loans articles
More Loans FAQ's
|
