Question regarding loan insurance.

andrew71

We currently have a loan that because I am currently off work sick is being paid out by the loan insurance.
It now would seem that my employer's will be terminating my contract due to the fact I have been off work sick now for two years.

I cannot seem to find any literature about the loan so was hoping (fingers crossed) that somebody maybe able to give me some feedback and advice.

When work do terminate my contract would the loan company still pay out. (due to the fact I have been terminated due to illness and not sacked)
Would I still need to send in sick notes to the loan company? (We do this at the moment) or because I would be classed as out of work would I need something else instead?

I can appreciate that these questions can not be answered without more information, but I was hoping that somebody may of been in the same situation.
Many thanks.

regularsaver1

I'm unsure about the employment being terminated as a result - but I;d also find out how long they will pay monthly payments for anyhow

usually policies are a maximum of either 12 months or 24 months

You would still have sick notes so might still be ok - but I would double check that time scale anyhow

andrew71

The insurance will pay out for a maximum of 5 years. The basics are that we took out a loan a few years back to carry out some work on the house. With the insurance (Halifax loan) Once I was diagnosed as being ill they agreed to payout the loan each month. Fair enough. I am going to call Halifax insurance tomorrow to find out what exactly the procedure would be. I just hoped that maybe somebody on here had been under the same situation and could throw some light on it.

regularsaver1

I'm suprised - as that policy is usually 12 monthly payments - but you must have an oler policyn maybe?

Astaroth

Policies do vary greatly in their terms and conditions between insurers and even between policies issued by the same insurers.

Certainly with our products sickness over rides unemployment and so the claim would continue on the same basis (though you should inform them of change in circumstances) - once you were well again then the claim would have to change from a sickness to unemployment claim.

andrew71

The loan was taken out as a secured loan against the house. Not the best but at the time we needed to have a lot of work done to the house.
I've just phoned Halifax insurance and they've said as long as my contract was terminated due to ill health and I still send in sick notes from my Doctor. It will be fine. I would just need to inform them when I go back to work.
So that is a weight off our shoulders at least.

regularsaver1

sorry its only cause i used to sell halifax loan ppi beforw working in mortgages - used to be 24 months, then 12

but it can vary depending on when you took

good news that its all fine