| To cope up with unforeseen circumstances like | | | | from any reputed insurance company in the market. |
| accident, sickness, job loss, and death, many financial | | | | The following are some of the PPI schemes available |
| companies now offer payment protection covers on | | | | on secured loans: |
| loans. Since different customers have different | | | | Single cover for the employed- This covers the |
| requirements, at different stages in their lives, | | | | following: |
| companies offer tailored cover options to meet the | | | | - Accident and disability cover |
| individual needs of the borrowers. | | | | - Involuntary Employment Cover |
| Financial experts from the UK loan market say that | | | | - Life Cover |
| these payment protection covers are vital especially | | | | Single Cover Plus for the Employed- In addition to the |
| for secured loans. This is due to the fact that the | | | | benefits of the 'Single Cover' plan on secured loans, |
| borrower puts his home as collateral and if he | | | | the borrower's partner also gets life cover, if his/her |
| defaults on the loan payments due to any reason; his | | | | name is mentioned on the credit agreement. |
| home may get seized by the lender. So, to minimise | | | | Joint Cover for the Employed- If you have jointly |
| the risk of repossession of the asset at stake, | | | | taken a secured loan with your partner, both of you |
| availing a payment protection cover is vital. | | | | will get payment protection insurance. Therefore, you |
| These protection plans are a type of insurance that | | | | both get the reassurance that your loan repayments |
| protect the instalments on your secured loans. Thus, | | | | will be made when any one of you face any financial |
| they are also known as PPI which stands for | | | | paucity. |
| Payment Protection Insurance. These plans are not | | | | Single and joint cover for the Self Employed- In this |
| mandatory but advisable, especially in the case of | | | | case, the borrower or borrowers get the following: |
| secured loans. Under this, the borrower agrees to | | | | - Accident and sickness cover |
| pay a certain amount along with the loan instalment | | | | - Hospitalisation cover |
| to the lender every month and in most cases, gets | | | | - Life cover |
| back the total amount refunded at the end of the | | | | - Loss in business |
| loan tenure. | | | | There are a plethora of loan plans available in the UK |
| The biggest advantage of these loan plans on | | | | loan market. One can choose a plan according to his |
| secured loans is that if the borrower fails to carry on | | | | her needs. These protection plans can save your |
| with his loan instalments, the PPI instalments will be | | | | home from getting repossessed in case you are |
| used to repay the remaining amount. One can avail | | | | unable to keep up with the monthly instalments on |
| PPI scheme on secured loans from the lender or | | | | secured loans. |