OK a bit stumped...

aj2703

with the info on the alliance + leicester website. This is the revelent section.

Optional Loan repayment insurance benefits

• Your monthly loan repayments could be paid if you are unable to work due to accident, sickness or unemployment.
• Cover against accident and sickness for the term of the loan, or until it is repaid.
• Cover for unemployment for up to 18 months.
• Life cover to pay off the loan if the worst happened.
• Claim after just 14 continuous days of being unable to work.
• Our cover also includes Jobcare - a service that will give you confidential help and advice on returning to work - including CV review and preparation, application letter writing tips, access to the national job vacancy database and much more.

2nd point from bottom says

Claim after just 14 continuous days of being unable to work.

Now ok this means that i basically pay half the normal amount i'd pay for that month yes..?. If that is so, how do i pay 50% of a normal month's payment, do i cancel the direct debit and phone them up and make a payment with the card..?. What happens if they take an age to send me the claim forms and then process it. Am i only liable for the 1st 14 days...?

TheGrant

They'll adjust the payment of your DD.

They probably will take ages like most insurance companies. Make sure you sign on as soon as possible and make your claim right away.

If it does drag out, then you'll need to keep on at them to get any adverse credit record stuff expunged and any bank charges sorted.

Just keep on at them. Maybe see if your bank would be willing to sort you out in case they drag their feet too much.

Although, you can claim from 14 days, will they actually pay from day 15? Just checking, you know how insurance folk like to be tricky.

jonesMUFCforever

No it does not mean what has been posted.
It means you cannot claim for the first fortnight of unemployment.
If on day 15 you are still unemployed you start the claim process.

What normally happens is that you continue to make payments when not in work and you get refunded the payments by the insurers.

IMO there is no paying 50% at any time.

aj2703

So what happens if you don't have the money to continue paying..?. I don't want to say how much but dole money wouldn't cover it. ~I thought the whole point of insurance would be to pay straight away....

jonesMUFCforever

aj2703 wrote: »

So what happens if you don't have the money to continue paying..?. I don't want to say how much but dole money wouldn't cover it. ~I thought the whole point of insurance would be to pay straight away....

You ask for financial help from the lender to tide you over - and make sure that you complete any documentation promptly (keeping copies for your records).

No insurance will do what you want.

~Brock~

14 days is simply the period of excess before a claim can be considered - pretty good actually......most policies are at least 30 days and sometimes more.

Once the claim is accepted it is likely that the payments will be backdated to day 1 of you being unemployed.

Just make sure you reply to everything that the claims handlers ask for quickly. Many claims fail because of the delays in receiving the forms back. If in the meantime you are stuggling to make any payments that fall due then speak to your lender about it - knowing that an insurance claim is on its way will work in your favour.

Not sure if this PPI is monthly or single premium. If monthly, the only potential issue is if someone is in arrears by more than a few months at the time of the claim. Monthly premium PPI's attached to the loan may well get cancelled if the ongoing premium is not paid.

This was one of the (few) benefits of single premium PPI's - the cover was bought and paid for and therefore not cancellable by the insurers. It was also immune to price increases - something that purchasers of monthly paid policies are finding not to be the case with their policies.

aj2703

The loan is in myself and my partners name. I am the first named person on the loan and all payments have been made ontime. So hopefully everything should be ok.