From a borrower’s perspective, Payment Protect is a repayment waiver. It is an optional service you can choose to add to your loan when you accept the loan offer. You are not required to take out Payment Protect for your loan to be approved.
There are two levels of Payment Protect:
- Partial cover. This covers death and terminal illness
- Complete cover. This covers death, terminal illness, disability (due to illness, a medical condition, or accidental injury), and redundancy.
If you take out Payment Protect and you are affected by an event for which you are covered by Payment Protect and which impacts your ability to make your loan repayments, you will not be liable for payments covered that fall due after you have notified Harmoney and your waiver application has been approved.
The maximum amount waived depends on your level of cover and the nature of your event.
This table outlines events eligible for Payment Protect cover if you have it and the terms governing repayment waiver applications.
If you have a co-borrower for your loan and one of you chooses to add Payment Protect, both of you must get Payment Protect. However, one of you could get Partial cover and the other Complete cover.
If you have Payment Protect it is important to contact Harmoney as soon as possible when an event happens that could activate your Payment Protect cover, so your repayment waiver application can be processed.
Please note: Payment Protect is not a type of insurance cover. It is a repayment waiver service designed to cover your loan repayments under specific conditions as outlined this table, above, and in the Payment Protect terms (contained in the Loan Contract).
We recommend you seek independent financial advice on whether insurance products are relevant to your situation.