Loan Protection Cover

Most people nowadays recognise the need for adequate insurance cover. In fact we're constantly bombarded with information telling us of the need to cover everything from our possessions to our pets should something go wrong. However what about our financial commitments? Are we adequately insuring ourselves should we no longer be able to meet them? Maybe it seems morbid but should the worst happen would we be able to meet our mortgage and loan repayments? Our car loans and insurance? Bills?

According to the Alliance and Leicester the answer is no. In an age where we have more financial commitments and 88% of adults are committed to paying monthly bills it would appear to be even more important that we have adequate insurance cover so our loved ones wouldn't have to face the added blow of sudden and crippling debt problems. It could be that the idea of sickness or death placing this burden on our loved ones is one we'd rather not think about. However the fact remains that only around one in 25 people have cover for household bills and the number seems to be just as worryingly small for credit cards and personal or car loans.

While this is cause for concern, surely our homes at least are safe? After all while the subject of insurance cover for loans, credit cards and household bills isn't that widely talked about we are much more savvy about life insurance to project our mortgages. Aren't we? Well the answer is that we are, but there are still worrying gaps in our home loan protection. Friends Provident estimate that one in four mortgage holders don't have home loan protection and out of those that do one in nine admit its not enough to cover their entire loan. The result? Three quarters of those without insurance protection for their mortgage could lose their homes in the event of a death.

While all of this may seem worrying and confusing the peace of mind you would receive from knowing your financial commitments are covered is worth researching adequate loan protection insurance and shopping around for the best policy for your circumstances. At the end of the day should the worst happen nothing would lessen the emotional impact on our families. However ensuring that our home loans, personal loans and credit cards are covered would mean they are spared any additional financial worries at a time when our loved ones are unlikely to need anything more to worry about

25/3/05