What does Personal Loan Protection cover?

It’s important to understand when and how your Personal Loan Protection policy can help support you if you suddenly lose your job, or get sick or injured and can’t work.

Could I be covered if I’m also getting other benefits?

Yes, you can make a claim even if you’re eligible for benefits from somewhere else such as workers’ compensation, sick leave or Centrelink benefits.

When will my policy cover my Personal Loan repayments?

Your policy will help cover your monthly loan repayments:

After you become unfit for work until you return to work. The maximum payable is the total of the monthly repayments remaining in the period of insurance.
After you unexpectedly lose your job for up to 180 days or until you return to work where you are or will be employed at least 15 hours per week, whichever happens first.
Pay off your balance, up to $100,000 if you pass away.

Subject to the exclusions set out below.

The date your policy would actually start making your repayments depends on when you make your claim, when it’s accepted and your situation.

How much will my policy pay?

Insured event	Benefit
If you're unfit for work	Your monthly repayment amount divided by 30 to get a daily amount, multiplied by the number of days you’re unfit for work For example, if your monthly repayment is $300 and you ended up being unfit to work for 200 days: $300 divided by 30 to get a daily amount = $10 per day 2. 200 days x $10 = $2,000 paid either progressively or in one payment
If you lose your job	Your monthly repayment amount divided by 30 to get a daily amount, multiplied by the number of days you’re unemployed and up to a maximum of 180 days for any one continuous period of unemployment For example, if your monthly loan repayment is $300 and you started a new job 70 days later: $300 divided by 30 to get a daily amount = $10 per day 2. 70 days x $10 = $700 paid either progressively or in one payment
If you pass away	We pay the balance you owe on your Personal Loan at the time of death, up to a maximum of $100,000 For example, if you pass away and the balance owing on your Personal Loan is $15,600 your policy would pay $15,600 to your Personal Loan.

What's not covered?

There are a few other exclusions that apply to each type of claim which are generally common sense. For example, if you voluntarily resign you won't be covered. These are listed below.

Insured event	Benefit
If you're unfit for work	If you were not employed at least 15 hours per week at the time you became unfit for work If you have more than one usual job and you’re still able to perform the duties of one or more of your usual jobs Sickness, injury or disease occurring within 180 days of your policy commencing, for which you sought medical advice or treatment during the 180 days prior to your policy commencing Pregnancy or childbirth War or warlike activities, civil war, revolution etc, unless you pass away on war service Nuclear material or waste, or ionising radiation.
If you lose your job	If you were employed by more than one employer and you continue to be employed by at least one of those employers Voluntary redundancy or resignation If you were engaged in seasonal or contract work and your employment ceases at the end of that season or contract If you were hired to complete a specific task or to work for a specified period and your employment ceases at the end of that task or period If you’re self-employed or in a business partnership and your business temporarily ceases to trade, or your status as a partner was automatically discontinued under law or the relevant partnership agreement Industrial stoppage or you being on strike Pregnancy or childbirth War or warlike activities, civil war, revolution etc, unless you pass away on war service Nuclear material or waste, or ionising radiation.
If you pass away	Suicide within 14 days of your policy commencing War or warlike activities, civil war, revolution etc, unless you pass away on war service Nuclear material or waste, or ionising radiation.

Protection for your personal loan

Personal Loan Protection

Things you should know

Personal Loan Protection is issued by the insurers who are Westpac General Insurance Limited ABN 99 003 719 319 (WGIL) (who issues the unfit for work cover and the job loss cover) and Westpac Life Insurance Services Limited ABN 31 003 149 157 (WLIS) (who issues the death cover). This insurance is distributed by Westpac Banking Corporation ABN 33 007 457 141 (the Bank). The Bank does not guarantee payments under the policy.

This information does not take into account your personal circumstances. Like all insurance, some exclusions, limits and conditions apply. Before making a decision about this insurance, read the Personal Loan Protection Product Disclosure Statement (PDS) (PDF 204KB) for the full terms and conditions and to see if Personal Loan Repayment Protection is right for you.