Whatever you take a loan out for, be it consolidating a few debts, a holiday or a new car, the last thing you want to be worrying about is how you're going to pay it back if your circumstances change.
That's why our optional Loan Protection makes perfect sense. It's simply a way of making sure your monthly loan repayments are met if you cannot work due to accident, sickness or unemployment. It also includes life cover, so if the unthinkable happened your loan would be paid off, so your family wouldn't have to bear the burden.
Optional Loan Protection benefits
- Your monthly loan repayments could be paid if you are unable to work due to accident, sickness or unemployment.
- Cover against accident and sickness for the term of the loan, or until it is repaid.
- Cover for unemployment for up to 18 months.
- Life cover to pay off the loan if the worst happened.
- Claim after just 14 continuous days of being unable to work.
- Cover includes Guaranteed Asset Protection (GAP) if your loan is for a car or motorcycle to ensure your aren't out of pocket if your vehicle is written off.
- Our cover also includes Jobcare - a service that will give you confidential help and advice on returning to work - including CV review and preparation, application letter writing tips, access to the national job vacancy database and much more.
For more information see section 5 of the Policy Summary
Eligibility for optional Loan Protection
- Cover is available to anyone between 18 and 65 who works 16 hours a week whether an employee, contractor or self-employed
- If you are taking out a loan in joint names, personal loan protection only covers the first named person on the agreement
- If you are aware of any pre-existing condition, injury or disease 12 months before the start date of your policy, we may still insure you, however no benefits will be paid for claims arising from these conditions
For more information see sections 1 and sections 3 of the Policy Summary
Paying for Loan Protection
- The total cost of the Loan Protection policy is added to the loan as a lump sum (known as a single premium). This means that interest is payable on this amount over the term of the loan, until the loan is repaid, or Loan Protection cover is cancelled before the end of the loan term.
For more information see section 7 of the Policy Summary
Cancellation rights for Loan Protection
- From the date you sign the loan agreement, we allow you 30 days to decide if you need the Loan Protection cover. If you do not want to continue with the insurance, you can cancel the policy within this period without charge and providing you have not made a claim.
- If you want to cancel the insurance after 30 days a proportion of the premium may be refunded to your loan account, provided you have not claimed. Any refund due will not be calculated on a pro-rata basis because the amount payable at the beginning of the loan is greater than the end.
For more information see section 9 of the Policy Summary
Key exclusions for Loan Protection
- Life Cover: We will not pay life benefit if your death results from any condition, injury or disease which you knew about during the 12 months before the start date, or any death caused by either suicide or self inflicted injury within the first 12 months of the start date.
- Accident and Sickness Cover: We will not pay Accident and Sickness benefit if your disability results from any condition, injury or disease which you knew about during the 12 months before the start date; normal pregnancy; psychiatric illnesses including stress unless certified by an appropriate specialist; backache or related conditions unless there is supporting medical evidence; any cosmetic modification; self inflicted injuries; or alcohol; or drug abuse; or chronic conditions.
- Unemployment Cover: We will not pay unemployment benefit if you were not in continuous work for 6 months immediately before your employment ended, if at the start date you knew you were going to be made unemployed; or if your employment ends within 30 days of the start date; or if you become voluntarily unemployed including retirement; or if you work on a fixed term contract which ends (unless you have been in continuous work with the same employer for at least 12 months and your contract has been renewed at least once); or if unemployment results from your own misconduct.
- For Guaranteed Asset Protection Insurance Cover: If the purchase price of your vehicle represents only part of the credit advance, only the proportion of the credit advanced, which relates to the purchase price of the vehicle will be paid. Maximum benefit payable is £5,000. Your motor insurance policy excess up to a maximum of £250 will be paid. You will need to ensure that you have comprehensive motor insurance.
For more information see section 6 of the Policy Summary
Like all insurance policies there are some exclusions. Mainly these are things that you already know about prior to taking out the insurance, such as pre-existing medical conditions, impending unemployment or anything self-inflicted. If you are taking out a loan in joint names, personal loan protection covers the first named person on the agreement.
For full details of the main features and exclusions we strongly recommend you read the following documents: