What are the main features of loan payment protection insurance ?
 

1. Loan Payment Protection Insurance is almost always optional – you should not normally be refused a loan if you decide not to buy it.

2. Loan Payment Protection Insurance only pays out for a set period of time, generally either 12 or 24 months.

3. To claim on the unemployment part of the insurance policy typically you must have been employed continuously by the same company for the last 12 months on a permanent contract.

4. Check carefully if you are self employed and require cover – the insurance policy may not cover you.

5. You may not be able to make a claim for an illness you already have or have had before. Make sure you check this before you take out the loan payment protection insurance policy. This will be called a pre-existing medical condition and can include any medical conditions you have, even if they haven't troubled you for a while.

6. Stress or back complaints, and possibly other conditions, may not be covered, even if you can't work because of them. Again, it's worth checking before you take out the policy.

7. You have a legal right to cancel the loan payment protection insurance policy and get a refund within 14 or 30 days of taking it out.