If you take out a home loan, you are liable for the outstanding balance – even if you are off work involuntarily because of an accident sickness or involuntary unemployment.
The cover
All you have to do is complete the application provided at your branch. Provided you are eligible, repayment protection insurance will pay benefits for up to 12 months if you are unable to work due to an accident, illness or involuntary unemployment. You are also eligible for our Back to Work service, which assists you in finding a new job.
Eligibility
You must be 18 or over and under 64 years old; in paid work of at least 16 hours per week; a UK resident; paying or about to pay a mortgage or having a Northern Re:pay facility; up to date with your monthly repayments (if you have a home mortgage); and not aware of impending unemployment.
Benefits
You choose the amount of the monthly benefit you wish to receive in the event of a claim, subject to a maximum of 125% of your monthly repayment, 75% of your monthly earned income before tax, or £1,750, whichever is the less. The amount will depend on the size of your monthly payments and other details of your home loan. Benefits are subject to a 30-day waiting period.
What it costs
You pay only for what you need. So if you have a small home loan, you pay less to cover it. We calculate the premium by charging £5.48 (including Insurance Premium Tax) for every £100 of benefit to cover your monthly repayments. For example, if you select a benefit of £400 per month, we multiply £5.48 by 4 to arrive at a monthly premium of £21.92, which is collected from your bank account by a convenient monthly direct debit.
Important information
Northern Bank can provide you with advice on Repayment Protection Insurance which is provided by London and Edinburgh Insurance Company Limited, trading as Norwich Union (registered in England, No. 924430; registered office: 8 Surrey Street, Norwich NR1 3NG).
Northern Bank Limited and London and Edinburgh Insurance Company Limited are both authorised and regulated by the Financial Services Authority. Northern Bank is a member of the Danske Bank Group.