Why do I need to protect my loan?
There are 1.6 million workplace injuries every year.
(Royal Society for the Prevention of Accidents)
Taking out a loan can be a worry. What happens if your circumstances change and you can't make your repayments? Lombard can provide you with information on the levels of cover which are available so that you can choose the right level of cover for your circumstances. In relation to a joint loan application, Loan Payment Protection is only available for the first named applicant.
What does it cover?
With Lombard Direct you can take out Loan Payment Protection with your loan to cover your repayments in the event of:
- Sickness
- Accident
- Unemployment
- Major Illness
- Death
There are three types of Loan Payment Protection insurance available so that you can select the cover that is right for you:
 |
Life, Accidental Death or Injury | Major Illness | Hospitalisation | Sickness/Accident | Unemployment | 10% Premium Cash Back | Back to Work Service & Medical Helpline |
|---|---|---|---|---|---|---|---|
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18 months |
18 months |
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12 months |
12 months |
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12 months |
How much does it cost?
What's more, it costs less than you might think. On a typical £10,000 online loan, the cost of the Classic Cover could be as little as £39.39 a month.
As a bonus, if you take out Premier Protection and you repay your loan without making a claim, we'll give you a lump sum of 10% of the premiums you've paid. So it's good news however you look at it!
|
Loan Amount | Monthly repayment with Protection | Monthly repayment without Protection | Total cost of Protection | Total amount repayable |
|---|---|---|---|---|---|
|
£10,000 | £268.21 | £198.94 | £69.27 | £16,092.60 |
|
£10,000 | £250.74 | £198.94 | £51.80 | £15,044.40 |
|
£10,000 | £238.33 | £198.94 | £39.39 | £14,299.80 |
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Example loan: £10,000 over five years, with 60 monthly payments. |
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Repayments with Loan Payment Protection include Insurance Premium Tax and interest is payable on the Loan Payment Protection premium.
Rate available will depend on your loan amount and personal circumstances.
