FAQs*

What is payment protection?

Payment protection is a scheme offered by most lenders that allows customers to protect themselves against accident, sickness and involuntary redundancy whilst they still have outstanding loan repayments to make. There are also optional life schemes as well to settle loans in the event of death, up to a maximum sum. Many people take out this optional insurance for extra peace of mind and to protect their families against financial problems that can result from illness or unemployment.

Payment protection is an additional product that must be arranged separately to the loan; it is not included.

Not everyone is eligible so you should check in advance to make sure that you are. Criteria differ from provider to provider but generally they take into account your age, health, current employment and also the terms of the loan.

Should you take out payment protection then you can expect monthly payments in the event of an accident or redundancy, subject to the terms and conditions of your plan.

These normally cover the repayments in full, but do check both the level of cover (which can be set per month) and the effect of multiple claims. For instance, some providers will expect you to be in full-time employment for a certain period of time (e.g. 6 months) before they will sanction payments to cover a second redundancy within the timeframe of your scheme.

For a list of payment protection providers, or more information on how the schemes operate, please call 08000 196 777.

*Nothing in these FAQs constitutes advice and is intended for general information purposes only. For qualified advice, please speak with UK Personal Loans Limited 08000 196 777.