When it comes to taking out loan protection there are many things that you should know. For a start, if you want the best deal and the cheapest premium then make sure you shop around and buy the cover independently from a specialist provider. The cover will usually be offered to you - and is sometimes included in the loan without you even knowing - if you take your loan from the high street banks and lenders, however this is the dearest way to purchase cover and you do have options.

The high street lender will have you believe that the cover is compulsory and has to be taken alongside your loan, this is because more often than not they charge high premiums for their cover and of course put profits ahead of the consumer. By shopping around, you can see what policy is right for - and at what price.

The cover is invaluable. Loan protection is taken out if you have credit such as a loan or credit card and you want to ensure that the monthly repayments for them could be met if you were suddenly out of work through suffering from a prolonged illness, accident or where you were made redundant. The cover will usually pay out a fixed monthly income for up to 12-24 months after you have been out of work and for a specified amount of time, which is usually around 30 days.

Loan protection has taken a beating recently though when it came to light that policies have been mis-sold and some lenders, in particular the high street providers, were charging extortionate prices for the protection.

Without a doubt the cover can be essential and it does bring great peace of mind, but you have to understand the product and what you are and are not covered for and, indeed, the exclusions which are found in all policies. By shopping around for your loan protection insurance you can ensure that you will get the cheapest quote for your premium while buying a quality product.