Accidental Cover

Under the Loan Payment Protection Plan, you are covered if you are unable to meet the repayments of your loan due to an accident. Accident cover is split into three sections; Accidental bodily injury, Accidental injury and Accidental death.

Accidental bodily injury

A bodily injury caused solely by accident, external, visible and violent means. This will occur within your loan repayment period and the period in which your payment is protected. The injury will be unrelated to any long term illness or injury (including mental illness). Monthly repayments will be paid by the insurer to the lender for the duration that you are unable to work as a result of the injury.

Accidental Death

Death that occurs as a result of an accidental injury, including drowning. The death will be caused solely by accidental, external, visible and violent means, and will occur within your loan repayment period and the period in which your payment is protected. The injury will be unrelated to any long term illness or injury (including mental illness). You will be covered from the age of 72 until the age of 80. Payment of the loan will be paid in full to the lender.

Accidental injury

The accident will result from an accidental bodily injury, will be caused solely by accidental, external, visible and violent means, and will occur within your loan repayment period and the period in which your payment is protected. The injury will be unrelated to any long term illness or injury (including mental illness), and will result, within 12 months from the date of the injury, in the loss of a limb or blindness. You will be covered from when you retire, or reach the age of 72 (whichever comes first). The insurer will pay the outstanding balance of the loan to the lender from the date which the injury caused the loss of limb or blindness.

APR/Annual Percentage Rate

The Annual Percentage Rate (APR) is the percentage of interest charged against your loan each year. It takes into account the value of the loan from the start of the loan period to the end of the loan period. As with anything you buy, there are charges, and the APR rate is a way of comparing prices of loans from one company to the next, to get the best value for money. If the typical APR is 7% on a loan of £1000 for example, you will pay 7% of the total loan amount each year of the repayment, as interest and charges, which will automatically be part of your repayments.