Financial Favourites

When you take out a guarantor loan, depending on the lender, you may be offered payment protection insurance, so what is this and should you take it?

Payment protection insurance is insurance against the worst happening and you being unable to make payments.

If you feel that you need protection, to make sure that you maintain your payments, it may in fact be better to look at income protection insurance as this is cover for the same sorts of eventualities but instead allows you to distribute the payouts however you wish, be it on loan repayments or on food, utility bills and so forth.

For more information on Guarantor Loans please click here.

For more information on Income Protection Insurance click here.