Payment Protection Insurance

Payment Protection is an insurance product designed to protect the monthly re-payments under any personal finance agreement, mortgage or loan in the event of Unemployment, Accident or Sickness.

What does it cover?
In the event an individual is out of work due to sickness, an accident or redundancy, Payment Protection will cover the monthly re-payments on the vehicle until the insured returns to work, or for up to 24months depending on the cover selected.

For Example:
Your client is paying £390 per month for their vehicle over a 3 year period. 18 months into their agreement they are notified of redundancy. Payment Protection will help support them by paying the £390 per month and therefore removing the stress of keeping up their re-payments, or even worse, forcing them to cancel their contract early.

Available covers:

Life, Accident, Sickness & Unemployment

Accident, Sickness & Unemployment

Accident & Sickness only.

Why is this protection important?

The Prospect of redundancy during uncertain times
According to Government statistics, 755,000 people were made redundant in the UK between June 2002 and May 2003 - the equivalent of over 3,000 every working day. A payment protection policy could have helped many through a financially difficult time.
Savings are often insufficient
According to the Institute of Fiscal Studies, nearly half of us do not save regularly and a third have no savings at all. This lack of saving could cause financial hardship in the event of sickness, accident or unemployment.
Accidents do happen
Over 320,000 people were killed or injured on UK roads in 2000* Nearly 3 million people suffered injuries at home in 2000 that warranted a visit to A&E* Over 47,000 employees suffered major injuries at work in 2001, with 736 resulting in death** These accidents could leave people unable to work for long periods of time.
Ill-health can be a problem
When in good health, may people find it hard to envisage suffering from a major or critical illness but, if you are borrowing money, thinking about this now could save financial problems in the future.

*Royal Society of the Prevention of Accidents (Rospa) **Health and Safety

Does the customer have to wait before they can make a claim?

Yes. You cannot claim for Unemployment during the first 60 days of the cover. For Accident and Sickness claims you are covered from day one. When you make a claim there is a waiting period of 30 days, which means that you have to wait for 30 days until you receive your first payment, providing you are still unable to work after 30 days.