What is...

Health Insurance

Health Insurance is a policy that can pay for private medical treatment, should you fall ill. Health Insurance is sometimes offered by lenders to provide the borrower with financial protection in the event of sickness or accidental injury. The chances of your credit application being accepted are not influenced by your decision to either take or leave Health Insurance. Health insurance on a loan is a form of Payment Protection Insurance.

While these policies provide peace of mind and help some customers cover loan payments during illness, Health Insurance may not suit everyone. For example, you need to be off work for a set amount of time to qualify for payments. Similarly, insurers will only provide cover for a limited amount of time, so you unlikely to be able to rely on Health Insurance to repay the entire loan.

Premiums are either paid as an initial lump sum or on top of your monthly loan repayments. The term that it runs for can be limited to specific period; however, most policies will offer cover until retirement age, although this may increase the premium of the policy.

Do you need insurance to get a mortgage?

You do not need Health Insurance to get a mortgage. The only legally required insurance for a successful mortgage application is buildings insurance, which covers the cost of repairing the structure of your home, such as the roof and walls.

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