Secured and Unsecured Personal Loan UK

If you have taken out a loan, for whatever reason, then you should have a plan in place in order to be able to still repay the loan. A wide variety of negative unforeseen circumstances can occur - an accident, illness, losing your job, or even death. You can't tell when you could be affected.

The following statistics exemplify the need for insurance. In the UK every day 3,000 people start claiming DSS benefit because of illness or injury, almost 1 in 6 of these will not return to work for 6 months or more, 300,000 people a year in the UK die from heart disease alone and over 500 people per day become unemployed. Unfortunately when the unexpected does happen your financial commitments still exist.

For the above reasons we always recommend protection insurance on all loans. Should you require further information please discuss with the personal loan advisor appointed to deal with your case. You will be contacted by your personal loan advisor shortly after application and will be provided with full contact details.

FAQs

What is Payment Protection Insurance?

Payment Protection Insurance (PPI) is for your back-up plan if you can't work due to accident, sickness or unemployment. For example if you break a limb, PPI will pay your monthly loan repayments for you up to a maximum of �1,000 (this figure varies depending on the type insurance cover. In the event that you die, PPI will clear the outstanding balance of your loan.

Do I really require this?

It is all down to the individual and their financial situation. If for example you have savings to cover your monthly repayments you might feel you don't need extra protection. But if you don't have savings to fall back on, Payment Protection Insurance will help you to make your repayments in tough times.

Am I entitled?

Each company that offers you the PPI will have their own individual specifications - check this with the loan advisor. As a guide if you are over 21 and under 65, and are actively working, employed or self-employed for at least 16 hours each week, or on statutory maternity leave from this employment, and live in the UK you will be eligible for a PPI

What do I get if I claim?

They will pay your monthly loan repayments, from the first day you're not able to work, subject to a minimum period of 30 consecutive days. They will pay unemployment, accident and sickness claims for up to 12 months. If you die, they will pay off the outstanding balance of your loan, (excluding any arrears).

How much does it cost?

The monthly premium for the Payment Protection Insurance is a percentage of your monthly loan repayment will be shown in your breakdown.

When wouldn't I be covered?

These are typical exclusions:

One can't claim for accident, sickness or unemployment:

•	For any sickness which they knew about, or which is related to a condition they consulted a doctor about in the six months prior to the start date of the policy.
•	Due to normal pregnancy or childbirth.
•	Caused by elective surgery, e.g. cosmetic surgery.
•	Caused by intentional injury or alcohol, solvent or drug abuse.

One can't claim for unemployment:

•	If their work is seasonal or they have fixed term contract ends (except in the circumstances referred to in the above section).
•	Due to voluntary redundancy, resignation or dismissal as a result of misconduct, Which they knew about, or which happens within 30 days of the start date of the policy.
•	Unless they were working for at least 6 consecutive months prior to becoming unemployed..

You will not be covered for any event, which happens:

•	While you are away from the EU for more than 120 days, or if you cease reside in the UK.
•	Due to civil commotion, riot, insurrection or war.
•	As a result of AIDS or HIV infection.
•	You won't be entitled to any benefits if you commit suicide within one year of the policy start date.

How do I claim?

If you can't work due to accident, sickness or unemployment, you must inform the Insurance company and your loan provider immediately

Unemployment claims

You need to prove you are 'officially' unemployed, so you'll need to register with the Department for Work and Pensions as soon as you become unemployed, and may need to provide your Insurance company with wage slips, termination notice and P60 or P45. If you were self-employed, you may need to provide bank statements, accounts, Inland Revenue or National Insurance records and proof that you have ceased to trade. If you are a company director, you must be able to prove that your company has been, or is in the process of being, wound up.

Accident & sickness claims

You will need to provide evidence from your doctor that you are certified as unfit for work. You will be asked to provide continuing certificates from your doctor for as long as you are claiming. In some instances, the loan provider and insurer may ask you to have a medical examination at their expense.

Death claims

Your next of kin or your chosen representative will need to provide the insurer with satisfactory proof of your death e.g. a death certificate.

Extra information?

In general only one type of benefit can be paid under a policy at any one time and no claims can be made for a period for which any benefit under the policy has already been paid. If you have an accident or develop an illness, which may lead to a claim, you must place yourself in the care of a registered medical practitioner, whose advice you must follow. Benefits under the policy are currently non-taxable, but this may change by legislation. Benefits under some insurance policies can affect entitlement to some state benefits. Under current legislation, benefits paid under this policy will not affect your entitlement to state benefits. Any claim under the policy must be within 90 days of the event giving rise to the claim, as otherwise the claim may be lost.

This information is is intended as a summary and guidance only. The full terms and conditions are explained in the policy document, which will be sent to you when you apply for cover. Please read it carefully to make sure it is suitable for you.