Payment Protection Insurance protects a borrower's ability to maintain repayments and helps them avoid getting into debt should they be unable to keep up their repayments due to accident, sickness (Disability) or unemployment.
Policies are available to protect most forms of personal credit, including mortgages, personal loans and credit card repayments. Cover is often purchased at the time the finance arrangement is made, but may be available at a later date or taken out as a stand-alone policy
The cover is very easy to purchase, as there are very few eligibility requirements. Typical requirements are that you are aged 18 to 65, or higher in some circumstances, and that you are employed for at least 16 hours a week or on a long term contract or have been self-employed for a period of time.
All policies will have a period at the start of each claim that you will need to wait before payments begin. Once a claim has been accepted, benefit payment periods will vary but typically, claims are paid for up to 12 months in most cases, but some may last as long as 24 months. Why is payment protection insurance important? Payment protection is designed to help pay your financial commitments in the case of accident, sickness (Disability) and unemployment. These circumstances have been proven to cause financial hardship due to a reduction in income, making it difficult to maintain payments on mortgages, loans and credit cards.
Our Payment Protection Insurance could offer:
- Cover for your repayments against accidents, involuntary unemployment, illness and hospitalisation
- Payment of the outstanding balance of your loan if you die, suffer a critical illness or permanent total disability
- Additional nursing and medical services
- 'Back-to-work' and career assistance services
