Loan protection insurance
Loan protection insurance usually covers personal and car loans. The aim of the policy is to protect your monthly loan payments in case of unemployment, illness or an accident. If for any reason you are unable to work the insurance company will pay you a monthly amount for a maximum of 12 or 24 months as a part of the policy. They are usually sold with loans for an additional premium, but it is worth to shop around before as prices can vary considerbably by insurer or bank.
