Payment Protection Insurance

What is Payment Protection Insurance?

Payment protection insurance is a type of income protection policy where you have a product that you need to repay such as a loan, credit card or mortgage.

How does it work?

In exchange for a monthly premium you will be insured against illness, injury, redundancy and death. We strongly advise you consider how you would be able to afford to repay your loan or mortgage product if you became unable to work, or how your dependents would cope with repayments if you were to die. This type of insurance makes a payout to repay the loan, credit card or mortgage in such circumstances.

What is Not Covered?

Each insurer has different policy exclusions so discuss with us the coverage and how wide you want it to be. Generally, a wide coverage will result in a higher premium, but provide you with greater protection against more risks. If the risk is not covered, then the insurer would not pay out in the result of a claim. For example, suicide is a typical exclusion as an insurer would not want to cover this risk.

Insurance Obligations

You are obliged to be truthful with the insurer and tell them about any material facts. You must not breach any of the provisions of the insurance and make sure you provide full medical and other details as requested by the insurer.

How much does Payment Protection Insurance Cost?

The monthly payment amount will depend on various factors including your average monthly income, health and previous claims history.

If you would like to discuss whether accident & sickness cover could help you, please contact us for a competitive quote.