Loan insurance - payment protection uk

	loan protection insurance uk to protect your personal loan repayments against the risks of accident, sickness, unemployment and critical illness

Key Features

Policy Wording

How do I make a claim?

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Loan protection insurance policy wording

The following is an example of a typical policy terms and conditions, and is provided here to give you an idea of what is taken into account with regards to arranging and making a claim under such insurance.

You have applied for term life, critical illness, accident, sickness and unemployment protection from a UK approved insurance company and certain underwriters at Lloyd’s. In return for the appropriate premium, this insurance will insure you against death from any cause, specified critical illness (as more fully defined in the wording) disability and unemployment. Your proposal and any endorsements together with the key features and certificate and any written statement of medical or other information you have made are part of this insurance contract.

Cover provided

You can be covered under this contract if you:

permanently live in the United Kingdom, Channel Islands or the Isle of Man, for tax purposes;
have taken out a loan
are aged 18 or over and will not have reached 60 years of age before the finishing date of cover;
are actively working and you have been in continuous employment for the six-month period before the contract start date; and
are in good health.

You cannot be covered under this contract if you:

know of any possible unemployment or disability or illness which may affect you; or
are in temporary or seasonal employment.
know that you are not eligible to register as unemployed in the UK.
know, at the time of taking out this insurance, of any redundancies, restructure, reorganisation, financial or contractual threats within the business you work in, even if you do not believe these actions will result in your becoming unemployed unless you have declared this to us and we have confirmed our acceptance to you
are in formal dispute with your employer for performance related issues or facing other disciplinary action

Definitions

Some of the words and phrases we use in the contract terms and conditions have special meanings.

Contract of Employment	you are employed on a permanent fixed-term contract for at least 13 weeks and you have been in continuous employment with the same employer for at least two years. Under the contract, you will not be covered if your contract is not renewed and we will stop paying the monthly benefit on the date your contract was originally intended to finish.
Death	death from any cause within the period of this insurance
Disability	an accident or sickness certified by a registered medical practitioner in the UK (other than you or your husband or wife) which prevents you from doing your normal work or any similar work for which you are reasonably qualified and you are not doing any other job for payment or reward.
Dismissed	you are employed and your employment ends because of circumstances entirely beyond your control. Your unemployment, for the purposes of this insurance, starts on the day you are either given your formal written redundancy notice by your employer, the end date of your fixed-term contract or the final day of trading if your employer stops trading.
Doctor	a qualified medical practitioner registered who is not related to you.
Employed	you are in permanent employment and your employer is taking PAYE tax and national insurance contributions on your behalf.
Exclusion period	This insurance will not pay any unemployment benefit if you are notified of unemployment within the initial 120--days exclusion period even though your unemployment may not take place until after this period.
Finishing date of cover	Your insurance cover will cease when you either: a) die or are diagnosed with a specified critical illness b) retire from work or reach age 60; c) stop living in the UK; d) have received the maximum number of monthly benefit payments we allow; e) cancel your loan or have made the final repayment of your loan; f) you cease to pay your monthly premium; whichever one of these conditions occurs first.
Permanent employment	You are employed on a permanent basis and your job has no fixed finishing date other than the normal retirement age for your occupation. Or you have been in continuous employment either on a yearly contract which has been renewed at least once or on a renewable fixed-term contract with the same employer for at least two years in a row.
Pre-existing conditions	any sickness, condition or injury which you knew about and which you have received treatment or advice for (including regular or routine examinations or consultations to monitor the condition) in the 12 months before the insurance start date.
Self-employed	you are in a profession or business alone or with others and paying class 2 national insurance contributions or you are a company director.
Specialist	A specialist or consultant who has a specialist qualification in the relevant medical area.
Stops trading	when your business permanently stops trading entirely because of circumstances beyond your control or the control of any director or partner in your business.
Unemployed or Unemployment	A period during which you must be: a) receiving Income Support or Jobseeker’s Allowance or you do not qualify for these benefits because you have been entitled to make reduced national insurance contributions in the past; b) actively looking for work; c) registered as available for work at a Department of Education and Employment Office; d) without any work; and e not receiving wages instead of serving notice. If you are self-employed you must meet a to e above and have stopped trading. If you are a company director, your company must have been wound up by a creditor who is not a director of that company.
Waiting period	The 30 days during which you will need to be continuously unemployed or disabled before we start paying your monthly loan re-payments.
We or us	Compass Underwriting Limited for Sterling Life Limited for the term life and critical illness benefit and certain underwriters at Lloyd’s for the unemployment &/or disability benefits. Each underwriter is separately liable only for the part of the cover they provide.
Working	Paid employment under a contract, permanent employment or self-employment for 20 hours or more each week. You must also be paying the appropriate national insurance contributions.
You or your	The person or people named on your loan agreement

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