Is it good idea to get loan insurance policy? -

say u have mortgage, u get cancer or something and loose employment, what happens ? ... u cant pay off your mortgage anymore and bank is knocking at your door? If you want coverage for your mortgage, don't you want coverage to pay the electric bill, too? Or how about groceries? Or putting gas in the car?? I don't like loan insurance policies, because the ONLY person who really benefits is the lender. If you WANT disabiltiy coverage, buy disability coverage - it will help pay ALL your bills, not just one. For a mortgage you should get a mortgage protection policy. If you're in good health and think your job is secure then I wouldn't bother insuring other loans particularly if they're for relatively short periods (3-5 years). It's a question of risk assessment but you can eliminate some risks and expense by clearing your credit card bill each month and don't take out store cards It is a good idea but very few people do this because disability insurance is fairly expensive especially when the benefit period is 20 or 30 years to correspond with your mortgage. To reduce the cost get a premium quote for a policy that has a longer elimination period. An elimination period is like a deductible you won't get a disability benefit until the period expires. The elimination period could be 30 days, 60 days, 90 days, 6 months or even a year. Check with the agent that writes your other insurance. He/she can give you alternate quotes to fit your budget and financial situation. I personally would not purchase any loan insurance policy. I suspect the monthly premium would be extremely expensive and have a lot of exclusions. You best bet would be to check with your employer and see what happens in case of your disability, and I would almost bet you that it would be cheaper to purchase a disability income policy rather than any type of loan insurance. I would also check with your mortgage company and ask them what happens in case you become disabled and unable to make the monthly payments. Yes - you need mortgage protection insurance - this covers you if you are unable to work due accident/ disability or you lose your job to redundancy. Despite bad press due to mis-selling it is still a very important policy to have. MAke sure you check you are qualified to take out a policy - usually between 18 and 60 in full time employment for at least 6 months and in good health. Also check medical exclusions. As for rates - try http://www.portwood.co.uk/asuone.htm which has rates from ￡3.75% and reduced rates for younger (under 35s)