With the economy going wherever it is headed, and debt at all-time highs, it is no surprise that more and more people are considering loan protection insurance. The whole idea behind loan protection insurance is to keep you from default should something untoward happen to your income.

Types of loan protection insurance

When you have loan protection insurance, you sign up for a policy that will make your loan payments for 12 to 24 months in the event that you lose some of your income. This type of insurance is available, in various forms, for:

* Mortgages. This is usually done in the form of private mortgage insurance, and the mortgage lender is the policyholder even though you pay the premiums.

* Cars.

* Credit cards. Many credit card companies offer protection programs for a certain percentage of your balance. (If you don’t carry a balance, you get the protection for free.)

*Personal loans.

Additionally, there are insurance companies that provide loan protection insurance to cover all of the above, and that even comes with a death benefit.