Payment Protection Insurance
No-one likes thinking about illness, accidents or redundancy.
It’s a sobering thought, but the truth is that these things can happen to anyone, any time.
And if you’re paying back a loan, losing your job and income can be extremely difficult for you and your family.
All it takes is one unexpected event.
Then who’s going to pay the bills? Who’ll keep up with your loan payments?
Payment protection is a simple, low cost insurance policy that offers real peace of mind. You’ll know that your payments will still be met if the unexpected happens, leaving you free to make a full recovery or look for a new job.
Before you say “It’ll never happen to me”, consider the following.
What if you couldn’t work?
If you were off work because of an accident or sickness would you have enough savings to cover your loan repayments? Or more importantly would you want to use them to repay your loan?
If you are unable to work for over 60 days due to accident or sickness, Payment Protection will cover your monthly payments for up to a year allowing you to concentrate on getting better.
Did you know?
In 2003/2004 an estimated 38.6 million working days were lost overall, 29.8 million due to work-related ill health and 8.8 million due to workplace injury (Source: Health and Safety Executive).
In 2002/2003 28% of households in Great Britain reported having no savings. (Source: Social Trends, National Statistics).
Could you cope if you were made redundant?
If you are made redundant your monthly payments will be taken care of for up to a year, excluding the first 60 days, giving you the time to find your feet again.
Did you know?
650 people are made redundant per day in the UK. (Source: Social Trends, National Statistics).
Would you pass on your debt?
In the event of your death the policy will repay any outstanding balance or chosen proportion of the outstanding benefit, if you have split the cover, that you owe (less any arrears).
Did you know?
12,669 people died in accidents in the UK in 2003 (Source: Office of National Statistics)
37,215 people were killed or seriously injured in road accidents in 2003. (Source: Royal Society for Prevention of Accidents:Road Accident Casualties).
If the loan is taken out in joint names you can choose how you split the cover between each borrower up to 100% of the total monthly payment.
We recommend that you take out this Payment Protection Insurance. It’s a small price to pay to know that life will be easier for you and your family in the event of an accident, sickness or unemployment.
Like most insurance policies there are some exclusions/limitations. See our payment protection policy document and policy summary for full details of the cover available with your Northern Rock loan.
For general information about payment protection insurance, please see the guide to payment protection insurance produced by industry Trade Associations.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.