Loan Payment Protection Insurance

Loan protection insurance normally covers all of the loan repayment for the remaining period of the loan or until you return to an income, whichever is sooner. The majority of loan insurance providers will provide unemployment cover for a 12 month period, usually commencing 30 days after you lose your job, become ill etc.

The finer details:

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Life cover loan insurance:
They will not normally pay life benefit if your death results from suicide within 12 months of the start of the cover.
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Accident/sickness cover:
They will not normally pay if a disability results from any sickness, disease, condition or injury which you knew about or should have known about during the 12 months before the start date; normal pregnancy; self inflicted injuries; alcohol or drug abuse; chronic conditions; civil unrest, war, terrorism or nuclear radiation.
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Unemployment cover:
They will not normally pay if you were not in continuous work for 6 months immediately before your employment ended; if at the start date you knew you were going to be made unemployed; if your employment ends within 30 days of the start date; if you become voluntarily unemployed; if you work on a fixed term contract which ends unless you have been in continuous work with the same employer for at least 24 months and your contract has been renewed at least once; if unemployment results from your own misconduct.

NB: Your cover will end if: you die; or reach 65; or the date of your earlier and final retirement; or when your loan agreement ends; or the day before the fifth anniversary of the start of cover; or the date on which all amounts are paid under the credit agreement; or the date you cancel the cover.