Payment Protection Insurance
Payment Protection Insurance is a policy which covers the policyholder for the monthly installments on their credit contract in the event that they suffer from an insured event (outlined below). The policy cover options are specific to the policyholder’s source of income at the time entering into a Credit Contract. The benefits are payable directly to the financier. In the unfortunate event of death, PPI covers the outstanding balance on the loan.
The main risk with having finance is if something happens to your ability to earn money. PPI protects you, your family and your credit rating if the worst happens. With only a minimum stand down and generous cover for up to 60 months, PPI protection truly covers you for the unexpected at the time you will need it most.
ACC only pay to a maximum of 80% of your income – how would your household react to an instant 20% pay cut?
What Cover Options are Available?
Self Employed Cover
Insured events include death, accident, illness, business interruption, and bankruptcy.
Wage and Salary Earner Cover
Insured events include death, accident, illness, bankruptcy, and redundancy.
Retiree and Beneficiary Cover
Insured events include death, bankruptcy, permanent total disability, hospitalisation, and bed care.
What are the Benefits?
- No medical examination required to purchase a policy
- Pre-existing medical conditions covered if no treatment advice in 6 months prior to policy start date
- Benefits are paid directly to your Financier in relation to your Credit Contract
- Benefits continue until the end of your Credit Contract
- Peace of mind for the unexpected
- Low cost, once only premium
- Protects household income for other purposes
- Protects credit rating
- In the event of death, family/estate does not have to deal with debt and possible repossession
- Accident & Illness benefits paid from day 1 provided Accident & Illness > 7 days
- Redundancy paid from day 1 provided redundancy > 30 days
- Redundancy benefit of 12 months
- 10 day cooling off period