| If you take out a personal loan, you are liable for the outstanding balance – even if you are off work involuntarily. Repayment protection insurance is a simple, affordable way to help make your loan repayments.
Comprehensive cover
Your loan application form offers the option of repayment protection insurance. Provided you are eligible, Personal Loan Repayment Protection Insurance can cover the payments if you are unable to work due to an accident, sickness, hospitalisation or involuntary unemployment, subject to the terms of the policy.
Depending on your age or if you are retired, it may also provide benefit if you have to spend time in hospital. If you are in hospital for more than three days, a benefit of £25 is paid for each further day you are in hospital. In the event of your death, the outstanding balance up to £50,000 is paid.
You may also be eligible for Norwich Union’s Back to Work service, which assists you in finding a new job, or Norwich Union’s Active Retirement Service, which helps you make the most of your retirement.
Eligibility
You must be 18 to 64 years old when you take out the loan and under 70 when the loan is due to be repaid; in paid work of at least 16 hours per week; a UK resident; the first-named in the loan agreement; and not aware of impending unemployment.
Benefits
The benefits you receive, if you make a valid claim, will depend on your age and whether you are working or not. Benefits are subject to a 30-day waiting period or 3 days for hospitalisation. The table below summarises your cover at various ages.
The maximum number of benefits for unemployment is 12 months. Accident and Sickness benefit is paid until the loan ends or until you return to work, whichever is sooner. Hospitalisation benefit is restricted to 90 days.
 | Accident, sickness or unemploy-
ment claim | Hospitali-
sation claim | Life claim | Back to Work Service | Active
Retirement
Service |
| Under 65, working at least 16 hours per week | | | | | |
| 65 or over and under 70 | | | | | |
| Retired, under 70 | | | | | |
What it costs
The cost of repayment protection insurance depends on the amount you borrow, the term of your loan and the current interest rate. When you apply, you will be given a quotation.
Important information
Northern Bank Limited advises on insurance provided by the following insurers: For accident, sickness and hospitalisation benefits for agreements with a term of less than 60 months, and for unemployment benefits, London and Edinburgh Insurance Company Limited, trading as Norwich Union, (registered in England, No. 924430; registered office: 8 Surrey Street, Norwich NR1 3NG). For accident, sickness and hospitalisation benefits for agreements with a term of 60 months or more and for life benefits, Norwich Union Life and Pensions Limited (registered in England, No. 3253947; registered office: 2 Rougier Street, York YO90 1UU).
Northern Bank Limited, London and Edinburgh Insurance Company Limited, and Norwich Union Life and Pensions Limited are all authorised and regulated by the Financial Services Authority. Northern Bank is a member of the Danske Bank Group.
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