Most lenders will be keen for you to take out their payment protection insurance (PPI) to cover your monthly repayments if you are unable to work due to sickness, accident or unemployment. The protection will also repay the loan in event of your death; however you need to work out if this cover is right for you. If you have sufficient life insurance and receive long term sick pay from your employer, or your loan is only for a small amount, you may decide that the PPI cover is not required. If you do decide to take the cover, make sure you read the small print as the insurance will not cover you for pre existing medical conditions.