This plan is merely a “quick fix.” It is similar to leasing a vehicle. You pay a lower cost for privilege of driving car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy. If you are purchasing term life insurance because you need protection now but can’t afford higher payments of permanent protection in most cases you can switch your plan over to permanent protection when your situation changes (be sure to verify this before purchasing any policy). You can also look at term life insurance as an efficient means of protecting your family while using your remaining finances for savings or other investments.

A secured loan is a loan made with an asset, often your home, used as security against default on repayments. When you apply for a loan from a lender they look to see if you have any security that you can offer that will make risk of lending you money less of an issue.

Secured loans are where you agree to offer lender security over your home. This means that lender has right to take ownership of this asset if you fail to make loan repayments that are due under your agreement.

This security will generally be your home even if you still have a mortgage on property. This security basically makes a lender feel better about your ability to repay your loan. You put your security up as a guarantee to lender so that if you fail to make repayments they have a secured fall-back and can get their money back.

The fact that you have this security to offer a lender minimises risk they take lending you cash. They know they have a guarantee of getting their money back whatever happens so you'll get best interest rates available in market for a secured loan.

Before a lender will make a loan offer they are likely to consider a number of factors including your gross household income, past credit history and any adverse instances of mortgage arrears, defaults and county court judgements.

Secured loans are available today from a variety of lenders at a variety of interest rates. In taking out a secured loan you are effectively releasing capital that would otherwise have remained tied up in your property.

The majority of homeowners who take out loans will choose a secured loan option simply because it will be cheaper than unsecured loans.