Question re terms of PPI on graduate bank loan

jimbo83

Hi guys/girls

I have a grad loan with a high street bank and took out PPI on it.

I am considering a change in career however would the PPI cover me (ie make the payments on the loan) if i was to voluntarily leave my job, rather than be made redundant, asked to leave etc?

Does it matter how you became unemployed?

I hav had the loan since sept 08 and have never missed a payment on the loan or the PPI if that matters.

Thanks

di3004

Hi Jimbo

Hopefully someone will know the definate answers to this, check your policy's terms and conds.
I don't think they will for voluntary, but best to double check on this first.

If you continue from one job to another, I think this will be okay.
If they made you redundant, you should be okay too.

Do you mind posting what bank this is, maybe this can be checked out for you online, or someone who banks with the same bank may know.;)

jimbo83

di3004 wrote: »

Hi Jimbo

Hopefully someone will know the definate answers to this, check your policy's terms and conds.
I don't think they will for voluntary, but best to double check on this first.

If you continue from one job to another, I think this will be okay.
If they made you redundant, you should be okay too.

Do you mind posting what bank this is, maybe this can be checked out for you online, or someone who banks with the same bank may know.;)

Its Lloyds TSB.

Thanks

di3004

jimbo83 wrote: »

Its Lloyds TSB.

Thanks

Thanks, will try checking this out for you.;)

di3004

Just checked this from their website www.lloydstsb.com


http://www.lloydstsb.com/loans/graduate_loan.asp

Features & Benefits

• A loan from £1000 up to £10,000*.
• Competitive rates of interest.
• Up to 5 years to repay your loan.
• Option to make no repayments for the first three months**.
• Optional Graduate Loan Protection just in case you lose your income.

View Graduate loan interest rates

Graduate Loan Protection

Our optional Loan Protection could cover your loan repayments if you can't work due to illness, accident or unemployment. You can only take out this valuable reassurance when you apply for your loan so remember to tell us that you want it.

Our Loan Protection has been awarded five stars for quality of cover by Defaqto, an independent financial research company. This rating is based on the features and benefits of our Loan Protection product.



How do I apply?



In order to apply for a Graduate loan you must:

• have a Lloyds TSB Graduate Account,
• be a UK resident,
• be over 18 years old and under 75 years old at the expiry date of your loan.

Our staff at your local branch will be happy to discuss your requirements and will usually be able to give you an answer the same day.

Graduate loan important information


Subject to approval there is nothing to repay for the first three months of your loan. However please note that interest will be accrued from the date your loan is opened. A 9.9% APR typical rate applies on loans of £5,000 to £10,000 for up to 5 years.
Rates may also vary according to a combination of factors which we consider to set your personal loan rate for you. These include past credit repayment history, your past account history and other personal details held on our records.


Applicants must be UK residents over 18 who have a Lloyds TSB Graduate Account. Written quotation available on request. All lending and the rate available to you is subject to status and depends on our assessment of your circumstances. We will normally charge you an early settlement fee if you pay your loan off early.

Loan Protection
Optional Loan Protection may enable you to meet your loan repayments if you can’t work due to illness, accident or unemployment. You can only take out this valuable insurance when you apply for your loan so remember to tell us if you want it.
For Loan Protection Insurance Policies purchased on or after 1 January 2007, your Loan Protection Insurance Policy is underwritten by Lloyds TSB General Insurance Limited, registered in England (Company No.204373) 25 Gresham Street, London EC2V 7HN and Scottish Widows plc, registered in Scotland, registered office in the United Kingdom at 69 Morrison Street, Edinburgh EH3 8YF. All of these insurers are authorised and regulated by the Financial Services Authority (FSA).


How do I apply?



In order to apply for a Graduate loan you must:

• have a Lloyds TSB Graduate Account,
• be a UK resident,
• be over 18 years old and under 75 years old at the expiry date of your loan.

Our staff at your local branch will be happy to discuss your requirements and will usually be able to give you an answer the same day.

Graduate loan important information

You will not be covered for
Unemployment:

•

where you have not been paying the

correct tax or National Insurance

contributions immediately prior to
your claim
•

if you have not been continuously

employed for at least 16 hours per week

for a minimum period of six months
either at the time of signing your loan
agreement or during the term of your
Loan Protection Insurance policy
•

lasting for less than 15 complete and

consecutive days

•

which immediately follows a period

of casual or temporary work or

unemployment which is normal in your
line of work (for example seasonal or

where your contract is for a specific task)

•

which results from the end of a fixed-term

contract, unless certain conditions are

met (for full details, please refer to the
unemployment exclusions on page 20
of your policy document)
•

which you are notified of, or which begins

within 30 days of you signing your loan

agreement
•

during any deferred period.

Please note:

•

You must be meeting the Jobseeker’s

Agreement. Where you are ineligible,

you must be able to provide ongoing
alternative evidence acceptable to us that
you are unemployed and actively seeking
work of at least 16 hours per week.
•

If you are self-employed and you own

your own company as a sole trader or

partner in a partnership and are able to
control the affairs of the company, you
will not be covered for unemployment
unless you have involuntarily ceased
trading because you could not find
enough work to meet all your reasonable
business and living expenses and have

declared this to HM Revenue & Customs.

More here:
http://www.lloydstsb.com/media/lloydstsb2004/pdfs/m56039_0308_online.pdf

POLICY DOCUMENT:
http://www.lloydstsb.com/media/lloydstsb2004/pdfs/m52281_0308_online.pdf

Sorry forgot to add there is more info on the above link on what is covered etc, just didn't want to put too much on this page lol.

jimbo83

di3004 wrote: »

Just checked this from their website www.lloydstsb.com


http://www.lloydstsb.com/loans/graduate_loan.asp

Features & Benefits

• A loan from £1000 up to £10,000*.
• Competitive rates of interest.
• Up to 5 years to repay your loan.
• Option to make no repayments for the first three months**.
• Optional Graduate Loan Protection just in case you lose your income.

View Graduate loan interest rates

Graduate Loan Protection

Our optional Loan Protection could cover your loan repayments if you can't work due to illness, accident or unemployment. You can only take out this valuable reassurance when you apply for your loan so remember to tell us that you want it.

Our Loan Protection has been awarded five stars for quality of cover by Defaqto, an independent financial research company. This rating is based on the features and benefits of our Loan Protection product.



How do I apply?



In order to apply for a Graduate loan you must:

• have a Lloyds TSB Graduate Account,
• be a UK resident,
• be over 18 years old and under 75 years old at the expiry date of your loan.

Our staff at your local branch will be happy to discuss your requirements and will usually be able to give you an answer the same day.

Graduate loan important information


Subject to approval there is nothing to repay for the first three months of your loan. However please note that interest will be accrued from the date your loan is opened. A 9.9% APR typical rate applies on loans of £5,000 to £10,000 for up to 5 years.
Rates may also vary according to a combination of factors which we consider to set your personal loan rate for you. These include past credit repayment history, your past account history and other personal details held on our records.


Applicants must be UK residents over 18 who have a Lloyds TSB Graduate Account. Written quotation available on request. All lending and the rate available to you is subject to status and depends on our assessment of your circumstances. We will normally charge you an early settlement fee if you pay your loan off early.

Loan Protection
Optional Loan Protection may enable you to meet your loan repayments if you can’t work due to illness, accident or unemployment. You can only take out this valuable insurance when you apply for your loan so remember to tell us if you want it.
For Loan Protection Insurance Policies purchased on or after 1 January 2007, your Loan Protection Insurance Policy is underwritten by Lloyds TSB General Insurance Limited, registered in England (Company No.204373) 25 Gresham Street, London EC2V 7HN and Scottish Widows plc, registered in Scotland, registered office in the United Kingdom at 69 Morrison Street, Edinburgh EH3 8YF. All of these insurers are authorised and regulated by the Financial Services Authority (FSA).


How do I apply?



In order to apply for a Graduate loan you must:

• have a Lloyds TSB Graduate Account,
• be a UK resident,
• be over 18 years old and under 75 years old at the expiry date of your loan.

Our staff at your local branch will be happy to discuss your requirements and will usually be able to give you an answer the same day.

Graduate loan important information

You will not be covered for
Unemployment:

•

where you have not been paying the

correct tax or National Insurance

contributions immediately prior to
your claim
•

if you have not been continuously

employed for at least 16 hours per week

for a minimum period of six months
either at the time of signing your loan
agreement or during the term of your
Loan Protection Insurance policy
•

lasting for less than 15 complete and

consecutive days

•

which immediately follows a period

of casual or temporary work or

unemployment which is normal in your
line of work (for example seasonal or

where your contract is for a specific task)

•

which results from the end of a fixed-term

contract, unless certain conditions are

met (for full details, please refer to the
unemployment exclusions on page 20
of your policy document)
•

which you are notified of, or which begins

within 30 days of you signing your loan

agreement
•

during any deferred period.

Please note:

•

You must be meeting the Jobseeker’s

Agreement. Where you are ineligible,

you must be able to provide ongoing
alternative evidence acceptable to us that
you are unemployed and actively seeking
work of at least 16 hours per week.
•

If you are self-employed and you own

your own company as a sole trader or

partner in a partnership and are able to
control the affairs of the company, you
will not be covered for unemployment
unless you have involuntarily ceased
trading because you could not find
enough work to meet all your reasonable
business and living expenses and have

declared this to HM Revenue & Customs.

More here:
http://www.lloydstsb.com/media/lloydstsb2004/pdfs/m56039_0308_online.pdf

POLICY DOCUMENT:
http://www.lloydstsb.com/media/lloydstsb2004/pdfs/m52281_0308_online.pdf

Thanks di3004 - thats great.

Whats your view on this?

For me it doesnt seem to mention the manner of unemploment?!

di3004

jimbo83 wrote: »

Thanks di3004 - thats great.

Whats your view on this?

For me it doesnt seem to mention the manner of unemploment?!

Hi there

Well personally I would contact the bank to make sure on this, as you said it does not seem to mention the manner of unemployment, unless something is missed.

Did they give you a policy booklet when you taken the loan out?
If not they should supply you with these on request.

jonesMUFCforever

I will guarantee you this - if you resign or are sacked you will not be covered in any way shape or form.

jimbo83

jonesMUFCforever wrote: »

I will guarantee you this - if you resign or are sacked you will not be covered in any way shape or form.

So what exactly does it cover you for then?

Redundancy and thats it?

di3004

Hi there

Sorry, I did not add all the written policy details in my above post, just the part of unemployment.
I believe is covers as well for sickness, life cover and hospitalisation as well.

If you can though I would try to find out more direct with the bank about the voluntary side of it. Good luck.;)

CLAPTON

frankly there is absolutely no possibility that the policy will cover you if you voluntarially resign... just think about for a moment