| Additional
Resources |
Need a Small Business Loan?
By Jill Kane
Small business loans are available from a variety of sources. There are banks, savings and loans and lending companies in the private sector that make loans to small businesses. There are also some Read more...
|
|
The payday cash loan page
Below, you'll find extensive
information on leading payday cash loan articles and loan products to help
you on your way to success.
A loan which is repaid by a series of small, periodic payments until a given date, when either the balance comes due in a single, large payment or the amount of the payments rises significantly.
Are You Paying Too Much For Your Loan Insurance?
By Peter Kenny
When you take out a loan, it is likely that you will be offered insurance to protect your payments should you be unable to keep up with them due to illness or unemployment. However, many of the insurance policies on offer cover you for very little and are extremely expensive. If you want to find out what you should be paying for insurance and what to avoid then this article can help you to decide.
What is insurance?
Loan insurance is often known as payment protection insurance or PPI. This type of insurance covers you if you cannot make your payments because of an accident, illness or involuntary unemployment.
How much does it cost?
The price of insurance can vary greatly, but is usually added as an extra to your payments each month. Although the payment figure might look small, if you add it to the total amount and then add interest the number can seem much more.
Hidden costs
Although a might seem cheap, when payment protection is added the price can increase significantly. For instance, the amount you pay back on a £5000 over 5 years can increase by over £1,500 when insurance is added. Often, insurance is added without you knowing about it, which means you are paying for something you didn’t even ask for.
The benefits
Despite its high cost, there are some benefits to insurance. It can give you the
peace of mind that if something should happen to you then your payments are covered for up to a year. This means that you won’t be in financial difficulty or risk default if you are ill or injured. If this sort of security is important to you then insurance is probably a good idea.
Lack of cover
Although it can give you peace of mind that you will be covered, insurance has extremely limited coverage. For example, if you are self employed it is unlikely that the unemployment clauses will cover you unless your business has ceased trading. Before getting any insurance you should check that you are covered for the things that are important to you, otherwise the policy is not worthwhile.
Alternatives
There are some alternatives to insurance that are usually cheaper. Firstly, you can usually get the same sort of insurance cover independently from your provider. The price of this insurance is usually much lower than the price offered by your insurance company. Also, some of the clauses of the insurance may already be covered under other insurance policies that you have. Loan insurance can be worthwhile, but unless you are covered and can get the insurance for a good price then it is usually not worth having. However, if you shop around and know exactly what you need to be covered for, you can find insurance that will cover you in the event that you cannot keep up with your repayments.
Peter Kenny is a writer for creditcards-gb.co.uk.
For additional articles and an extensive resource for everything about credit cards, please visit us at Credit Cards UK and Loan Insurance
Visit www.creditcards-gb.co.uk
We strive to provide only quality articles, so
if there is a specific topic related to loan that
you would like us to cover, please contact us at any time.
And again, thank you to those contributing
daily to our payday cash loan website.
Additional
Resources |
How to bring a Business Opportunity to Life: Getting a Loan
By Philip Nicosia
You’ve found an excellent business opportunity, and are eager to act on it as soon as possible, lest that opportunity slip. However, you lack the proper funding to get that business of the ground. Read more...
|
|
Additional
Resources |
Arm Loans; What is A Home Equity Loan?
By Ben Anton
A home equity loan is a one-time lump sum credit a homeowner can acquire by placing their residence as the guarantee for payment. This type of credit is most appealing to consumers who may have poor Read more...
|
|
|
Home
Visit ArticleRead for more Topics
| |
|
