Life is uncertain... anything can happen anytime. Accidents, job-loss, failure in business and sickness are some of the unfortunate events that can happen to anyone. But, the loan instalments are still to be paid whatever may happen. So, what to do to make sure that your home is safe? State benefits can be one probable solution but you can't really rely on other's favour. Insurance is what you may opt for to ensure that your home is safe and secure.
Secured loans can be insured in a number of ways. There are plenty of insurance packages available in the UK loan market. Even the lenders nowadays offer PPI (payment protection insurance) that covers your loan instalments. Under this scheme, the borrower has to pay a monthly premium along with the loan instalments and in case, you meet with an accident or fall ill, the rest of the due amount will be paid by the insurer. This way, you save your home as well as save for the future as most lenders offer full refund of PPI on secured loans.
To justify the importance of PPI, especially in case of secured loans, Clive Briault, FSA Managing Director of Retails Market said: “When properly structured, explained and sold, payment protection insurance can provide worthwhile cover for consumers against unexpected changes in their personal circumstances. We were therefore pleased to see that sales of regular premium PPI sold with loans are generally compliant.”
So, whenever you procure secured loans from the market, make sure that you are taking some insurance cover to eliminate the risk involved in the loan deal.
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