Loan Insurance

[tetraa]

My sister took out a loan a year ago and has been keeping up with payments as usual.

My question is, she chose to not take out insurance with this loan and is wondering is it possible for her to do so now?

Thank you

 

[Mr DT]

Yes i am sure the bank who lent her the money would be OK with this.

Becareful, they have very tight conditions on what they will pay out for, often making them a waste of time. But it depends on her circumstances.

For example, if she took out insurance now and got made redundant i am sure there will be a clause that you had to have paid 6 month (Example only could be more or less) contribution.

Read the small print.

 

[moneyhoney]

Also, some of these policies will only cover repayments for a certain amount of time. So, if the loan is for a small amount, it may not be worth her while.

In addition to that, does she have sick pay in her job/is she likely to be made redundant? Is she self employed - many don't pay out to self-employed people.