PPI is a policy which may cover the policyholder’s monthly instalments on a Credit Contract if they suffer from an insured event . In the unfortunate event of death, long term injury or illness, PPI may cover the outstanding balance on the loan.
You can select between Single, Double and Joint Cover for your insurance type, for the meaning of these see the heading ‘Insurance type as shown on policy certificate’ in the policy.
The policy cover options and benefits 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 and the insured events are listed below.
WAGE & SALARY EARNER COVER
Insured Events: Death, Accident, Illness, Bankruptcy and Redundancy
SELF EMPLOYED COVER
Insured Events: Death, Accident, Illness, Business Interruption and Bankruptcy.
RETIREE BENEFICIARY OVER
Insured Events: Death, Permanent Total Disablement, Hospitalisation or Bed care and Bankruptcy.
The policy sets out the criteria to qualify for these benefits and the limits that apply, in the section applicable to each of the three different covers. The policy has an overriding maximum limit of $200,000. There are exclusions and conditions which apply to all three covers which are set out in the policy under those headings.
The policy will automatically cancel upon full prepayment of the credit contract, the policy shows this and the other circumstances in which you can cancel. There is also a cooling off period which is explained in the policy as well. The policy has a maximum period of cover of 60 months.