Do you need to be covered?
If you get into an accident or lose your job, you don't want to find yourself in situation where you're worrying about your loan or credit card repayments. Do you have an emergency fund that will help you through any difficult times? If not, when looking for a loan or credit card, it's worth finding out if the provider offers sickness or unemployment cover. You usually have to take this out at the start of the loan period, or when you sign up for a credit card. Check the terms of any payment protection cover carefully, as it is not suitable for all situations and can be expensive.
If you increase your borrowing at any time it can be a good idea to review your life insurance cover. You might want to have cover in place to pay off all your outstanding debts should the worst happen. Our handy calculator may be able to help you work out just how much cover you might need.
Financial terminology can be confusing. Let our Jargon buster help you make sense of it.
