Repayment protection

The facts about repayment protection

Of course, we all like to think 'it won't happen to me'. But in the last three years, Royal Bank of Scotland Loanguard has helped over 19,000 customers during periods of sickness and unemployment. 

Why Loanguard?

Loanguard has been recently been independently rated by Defaqto, an independent financial research company, as being in the top 10% of the market for strong cover protection.

The easy route to your cover

Loanguard is easy to arrange – simply ask when you apply for your loan. There’s no medical required and we’ll even cover you for pre-existing medical conditions.

How much does loan payment protection cost?

To find out how much payment protection costs, get a quote from our loan calculator.

Loanguard Protection will cover your monthly payments if you are certified by a doctor as unfit to work for 14 consecutive days.

You're also covered if you're made involuntarily redundant. You need to register with the Employment Service and receive National Insurance Credits for at least 14 consecutive days. You're not covered if you take voluntary redundancy.

There's a maximum of 12 months for unemployment claims and 60 months for accident or sickness claims.

However, if a medical specialist diagnoses you as suffering from a 'major illness', the insurers will pay the outstanding balance on your loan (except for any arrears).

It's not a question that any of us would like to ask - however Loanguard could pay the outstanding balance remaining on your loan (except for any arrears). Some causes of death are not covered.

Loanguard Protection is available to:

• The first named borrower on the agreement
• Anyone over 18 years and under 65
• Anyone in full-time employment, on statutory maternity leave or self-employed for 16 hours or more per week
• Anyone not aware of any impending unemployment which may result in a claim. The insurers will not pay any benefit directly relating to unemployment where you had knowledge of this event before applying for the loan.

Read the full Loanguard policy conditions for further details. The policy conditions can be viewed within the exclusions section.

As with all insurance policies there are exclusions to the Loanguard cover. Make sure you read and understand the exclusions and policy conditions before you apply.

Main exclusions

• Unemployment arising before or within 30 days of the date you signed your loan agreement
• Voluntary unemployment
• Pregnancy or childbirth, unless either of these develops into complications which is diagnosed as such by a doctor or consultant who specialises in obstetrics
• Alcohol, drug abuse or your own misconduct