Loan protection could help you in the current economic climate, which seems to be turning ever more hostile. The government’s own recent figures show that the average family is being battered on every front:
- Increases in food and fuel bills have raised the expenditure needed by an average household an additional £1,300 a year – the fastest rate of growth in such prices for 17 years;
- The total number of people unemployed and the total claiming unemployment benefits are both rising faster than at any time in the past two years;
- Individual bankruptcy applications rose by 12% during the first quarter of 2008, compared with the final quarter of 2007, while company bankruptcies also increased by 3% over the same period;
- Repossession applications by mortgage lenders have risen by 16% over the last year, which has seen the biggest increase since the early 1990s.
All in all, it is a time when most people could do with all the financial protection they can get. Loan protection, however, should perhaps come in for a word of special mention.
As personal finances come under greater and greater fire, there is less and less slack to cover the all too frequent mishaps in life – like accidents and illness, not to mention an unexpected notice of redundancy from work. With household budgets stretched to the limit, the loss of income makes it well-nigh impossible to find the necessary loan repayments each month. Without them, the future holds a tarnished credit record at best; a county court judgment or even bankruptcy at worst.
And that is why loan protection has become such an indispensable safety net. Even if you lose income whilst incapacitated from working because of an accident or illness, or if you have become involuntarily unemployed, loan protection insurance will ensure that the repayments continue to be paid.
Experts in the provision of standalone loan protection insurance are British Insurance. Their managing director, Simon Burgess, says: “Loan protection has become an essential part of most people’s armoury as they buckle down to face whatever the current hostile economic climate may have to bring”.
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