Unemployment, Accident & Sickness Insurance - British Insurance

Loan Protection Insurance including Life & Terminal Illness

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Our Loan Payment Protection Insurance automatically includes Life and Terminal Illness cover.

There are other providers of short-term Income Protection and other products designed to protect you against loss of income.
For impartial information about insurance, please visit www.moneyadviceservice.org.uk

Protect loan repayments
Loan Protection Insurance can help you protect your loan repayments if you become unemployed through no fault of your own, become a carer for a partner or relative, suffer an accident or sickness (otherwise known as disability), you are hospitalised, you die or are diagnosed with a Terminal Illness.
Choice of three types of cover:

• Accident, Sickness and Hospitalisation (known as Disability) with Life and Terminal Illness or

• Unemployment and Carer with Life and Terminal Illness or

• Accident, Sickness, Hospitalisation, Unemployment and Carer with Life and Terminal Illness.

Depending on which option you choose, this policy can protect you in the event you are unable to work due to Death or diagnosis of a Terminal Illness, Accident and Sickness and Hospitalisation, Involuntary Unemployment or becoming a full time Carer.

Variable excesses: 0, 30 or 60 days
The excess period is the period after which eligibility for the monthly benefit will start if your claim is accepted. For example, a 30 day excess period means you have to be off work for 30 days before you are eligible, and wait a further 30 days before you receive your first monthly payment. Zero excess is also called ‘back to day one’; although you have to wait 30 days before you are eligible, you will then be paid back to the first day you were off work.
Benefit of 125% of loan repayment
The monthly benefit payable will be the amount you have selected, up to a maximum of 125% of your monthly loan repayment or £1,000 or 50% of your normal gross income whichever is the lesser.
Outstanding loan paid on death or terminal illness
If you die or are diagnosed with a Terminal Illness which is likely to lead to your death within 12 months we will pay the outstanding balance of your loan up to a maximum of £50,000.
Short term protection - cover period of up to 12 months
Up to 12 monthly benefit payments will be paid in the event that you become unemployed due to Accident, Sickness and Hospitalisation or Unemployment and Carer; or a combination of these (depending on the cover you have chosen).
Initial exclusion period for unemployment cover
The initial exclusion period may be waived if you are transferring cover. Make sure that the cover basis is the same, you have held your insurance for at least three months and there is no gap in cover.
Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

A typical monthly cost for British Insurance Income Protection is £4 for every £100 of monthly benefit. This cost is based a 30 year-old looking to receive £1,000 a month from an accident, sickness and unemployment policy, opting for back to day one cover who will pay £40 a month with British Insurance. The monthly cost is inclusive of Insurance Premium Tax at the current rate of 6%.

Eligibility overview
Please note that this is provided as an overview. It is important that you read the eligibility you are presented with when completing an application.
You have a Loan Agreement in force at the Policy Start Date
It is a condition of the policy that you have a personal loan agreement (excluding a mortgage agreement) in force on the start date of the policy
You are between 18 and 64
To get cover under this insurance, you must be over 18 and under the statutory retirement age. Cover will end when:

• You retire from Work or reach the statutory retirement age, whichever is the earlier; or

• You stop residing or working in the United Kingdom; or

• You default on your premium payment; or 

• You or we cancel this Policy.

You are living and working in the UK
It is a condition of the policy that you are working (for at least 16 hours per week) and have been residing in the United Kingdom for at least 6 months.
Your work is permanent
You cannot apply for this Loan Protection Insurance to cover your loan if your work is casual, temporary (including agency work) or seasonal.
You have worked in the UK for the last 6 months
You can apply for this Loan Protection Insurance if you have worked continuously for the past six months.
Maximum benefit of 125% of loan repayment
The monthly benefit payable will be the amount you have selected, up to a maximum of 125% of your monthly loan repayment, and cannot exceed £1,000 or 50% of your normal gross income whichever is the lesser.
Existing reasons to claim?
You are not eligible to apply for this Loan Protection Insurance if:

• You are aware of any impending Disability, Hospitalisation or Unemployment; or

• You are aware of any circumstances which may result in you becoming a full time carer.

Contract Worker
If you are looking for unemployment insurance and are a contract worker (as defined by this insurance) cover is only provided for unemployment in certain circumstances. Please read the contract worker section in the policy wording, which is available throughout the application process, carefully. The underwriters require contracts to be of a minimum set length and/or to have been renewed at least once. Furthermore unemployment will not be covered beyond the date the contract would have otherwise expired naturally and non renewal of a fixed term contract will not be covered unless specific conditions of the policy are met.
Self Employment/Shareholder
If you are looking for unemployment insurance and are self-employed (as defined by the policy wordings for your selected insurance) please read the self-employed section in the policy wording, which is available throughout the application process, carefully. There are additional requirements you will need to meet to support a claim, including having to involuntarily ceased to trade and advised HM Revenue and Customs of this.
Initial exclusion period
The initial exclusion period is the 90 days immediately following the policy start date. During this time you cannot claim for unemployment if your policy has been taken out within 30 days of a new loan. This period is 120 days if your policy is taken out more than 30 days after the loan start date. This may be waived if you are transferring your cover from another provider.
Apply when your job is secure
You cannot apply if you are aware of impending unemployment, whether or not you have received official notification, or your employer has announced any job losses, departmental or company restructure or merger with another company. You cannot apply if you are aware of any circumstances which may result in you becoming a full time carer, or if you are aware of any impending Disability or Hospitalisation.
Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

About our policies
At British Insurance, we try to get you the best possible insurance price and rates with the minimum of hassle.

All insurers offer a 30 day ‘cooling off’ period. If you cancel during the first 30 days of the policy, you will receive a full refund provided you have not claimed.

Your cover is reviewed on an annual basis. Thirty (30) days before the policy has been in force for a year, and annually thereafter.

This Loan Payment Protection Insurance can help you protect your loan repayments if you become unemployed through no fault of your own, become a full time carer for a partner or relative, suffer an accident or sickness (otherwise known as disability), you are hospitalised, or you die or are diagnosed with a Terminal Illness.

Three types of cover
You can select from three types of cover:

Life and Terminal Illness together with

• Accident, Sickness and Hospitalisation (known as Disability) or;

• Unemployment and Carer; or

• Accident, Sickness, Hospitalisation, Unemployment and Carer.

Accident, Sickness and Hospitalisation

This pays a benefit if you are unable to work due to accident or sickness, as certified by a doctor. Normal pregnancy or childbirth is not classified as accident or sickness.

Unemployment and carer

This pays a benefit if you become unemployed or have to give up work to become a carer. Your policy documents will describe the definition of becoming unemployed or becoming a carer. In general, unemployment means that you are registered with the relevant government agency as unemployed and available and actively looking for a new job.

Carer means you are registered with your local Social Services Department as a carer and entitled to a carer's allowance.

Accident, Sickness, Hospitalisation, Unemployment and Carer.

This covers both of the above.

Life, Terminal Illness, Accident, Sickness, Hospitalisation, Unemployment and Carer cover provides the maximum protection under the policy.

Incidents insurers normally do not pay out on: Accident and sickness
There are specific restrictions with regard to back conditions, chronic conditions, stress anxiety and depression, AIDS, HIV and pregnancy, childbirth or abortions. The policy documentation will provide you with the full details.

Accident and Sickness as a result of deliberate injury or alcohol, solvent abuse or drugs, or any medical condition you already have are not covered.

Incidents insurers normally do not pay out on: Unemployment
Please do not buy this cover if you already have been told there is a risk of redundancy.

Your claim will not be accepted if you are notified you will become unemployed or need to become a carer during the initial exclusion period.

If you are transferring your Payment Protection Policy or cover from another provider, the underwriters will waive the 120 day initial exclusion period on your new policy so long as you can prove that there is no gap in cover between the old policy ending and the new one starting, and that you have had the previous policy for a minimum of 6 months.

You have to have been in permanent work for 6 months. If you are self employed or a fixed term contract worker, cover for unemployment is provided only in certain circumstances. If you choose either Unemployment only or Accident, Sickness and Unemployment cover we recommend you read the policy wording thoroughly to make sure you are happy with the cover provided.

Voluntary redundancy, resignation and retirement are not covered.

Other information
This policy is paid by monthly direct debit. Cover operates on a monthly basis and continues for each month that you pay your premium. Cover can continue until you retire or reach statutory retirement age, or you or the insurer cancel. You can cancel your policy at any time by giving written instruction to the insurers/administrators and by cancelling your direct debit with your bank. The insurers must give you a minimum of 90 days notice in writing to your last known address if they intend to cancel your policy. This will not affect any rights to monthly benefit which you may have already received under this policy.

All claims payment will be made directly into your bank account.

All our insurers have signed up to the Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Scheme (FOS).

Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

Call us to amend your policy
You will be able to amend your cover by phoning the telephone number in your policy documentation. Please note that the eligibility criteria are also applicable to amendments to your policy.
Cancel your policy at any time
You can cancel for any reason during the initial 30 day cooling off period and after that by giving notice in writing to the administrator.

Cover operates on a monthly basis and continues for each month you pay your premium. Please note that cover cannot continue after you retire from employment, when you reach statutory retirement age, you die or if you stop paying the premium.

Amendments to your policy by the insurers
The insurer has the right to review premiums and if they change they will give you at least 30 days notice in writing at your last known address.
Cancellation of your policy by the insurers
The insurer may cancel your policy by giving you 90 days notice prior to your policy review date, to your last known address. This will not affect any rights to monthly benefit that you may have already received under this policy.
Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

Making a claim is easy
To make a claim under the policies we offer is a very straightforward process. All you need to do is call the claims line number as found in your policy documents. If you cannot find it, just give us a call on 0844 346 0140 (Monday - Friday 8am – 5.30pm).
What happens next?
The insurer will send you the claim forms which you will need to complete and return.

The insurer may need information such as wage slips, termination notice and P45 or, if Self Employed, bank statements, invoices and annual accounts, Inland Revenue and National Insurance records, Doctor and Consultant reports and medical records.

If your claim has been accepted, payments will start in line with the excess period you selected and will be paid directly into your bank account.

Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

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0844 346 0140

Monday - Friday
8am - 6:00pm

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Insurance guide

FAQs

Q: Can I have joint cover?
Q: What is an excess period?
Q: How do I buy this insurance?
Q: How much benefit can I insure?

View all FAQs

What do we offer?

Income Protection Insurance (PPI)

This unemployment insurance also gives you the option to cover accident and sickness.

Income Payment Protection Insurance will pay a tax-free monthly benefit of up to £1,500 per month, after the waiting period (ranging from ‘back to day one’ to 180 days), in case of involuntary unemployment, or if you are unable to work due to an accident or sickness.

Mortgage Protection Insurance (MPPI)

Similar to payment protection cover, but restricted to cover your mortgage payments only. The maximum benefit is £2,000.

Holiday Home Insurance

From second home insurance in the UK to cover for your overseas holiday home we’ve got it covered through our UK based service through Towergate, who provide holiday home insurance to over 25,000 customers.