If you get sacked does your loan insurance cover the payments?

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  sraymond on 19/12/2012 - 19:40

  You will need to check the policy, but this is cut and pasted from one company.

  cover for your loan repayments (subject to a maximum monthly amount) for up to a maximum period of 4 months, if you are involuntarily unemployed.

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  hsk on 19/12/2012 - 20:19

  Ok, so that is what my son thinks, but the bank is not being so helpful, due to all this privacy stuff, it is hard to find out without him here with me, and he is on trial at another job and only had about 4 weeks without work, so I am not sure if it is worth chasing them. thanks

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  sraymond on 19/12/2012 - 23:23

  If he has all the paperwork and the inclination, I am sure they will pay. My son is the same. He has been laid off a couple of times and won't go to Centrelink until his phone has been cut off and every other bill is on final demand. Then he forgets to go to the job network appointment so doesn't get paid, then he gets a job and couldn't be bothered chasing the payment up.

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  Gagosta on 20/12/2012 - 07:43

  Really depends on your terms and conditions of the loan. Talk to money help and also the financial ombudsman service if the bank is not helping you out.

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  hsk on 20/12/2012 - 10:06

  thanks sounds like my son and yours are the same, but we can not just keep covering his bills, so will chase bank if I can.

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    TrueBargainer on 20/12/2012 - 13:58

    If bank does not want to speak to you due to privacy reasons, why don't you ring them up and say you are your son…and answer their security questions accordingly… you know what I mean…. ;)

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  tsunamisurfer on 20/12/2012 - 13:51

  I would suggest more information is required…like what type of insurance is it? From whom?

  In general such insurance would NOT cover getting sacked, can one imagine how this could be abused if it indeed covered sackings?

  I would suggest the insurance covers the payments where employment income is lost from injury / inability to work.

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  Geewhizz on 22/12/2012 - 08:24

  There's generally a minimum period after taking out the insurance before you are eligible. On my daughter's loan it was 12 months, so was worthless to her when she was retrenched a few months later. From memory she'd have also had to be out of work for 4 weeks or so before the insurance kicked in.