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Loan Termination Insurance

Often without warning our financial situation can change dramatically. An illness which goes on longer than expected or perhaps an accident which puts the breadwinner out of action for many months.
At some point it may prove difficult to make payments on your car loan and the only option is to hand it back to the dealer to reduce the debt. Often, the value of the vehicle declines quicker than the loan balance and as a result there may still be an amount to pay to the financier.
One of the great benefits ERIC Insurance provides is Loan Termination Insurance which takes care of the shortfall in this situation of up to $15,000, depending on option chosen, to give customers that extra peace of mind. With this simple and easy cover, there’s no need to endure added stress!

pdf Loan Termination Insurance Platinum Cover PDS (1.95 MB)

pdf Loan Termination Insurance Gold Cover PDS (2.57 MB)

pdf Loan Termination Insurance Silver Cover PDS (1.86 MB)

pdf Loan Termination Insurance Claim Form V4 (190 KB)


WHAT IS LOAN TERMINATION INSURANCE (LTI)?

It is important that You read this information and the PDS carefully so You may understand the extent of cover provided and its limitations.
Please note that this is a limited summary only and not a full description of the covers. Each cover noted is subject to terms, conditions, exclusions and limitations that are not listed in the summary. You need to read the full terms, conditions and exclusions of the Policy which specifies the options taken for a full explanation of the cover.


THE PURPOSE OF LOAN TERMINATION INSURANCE

This Loan Termination Insurance is a Consumer Credit Insurance (CCI) policy designed to assist You with the Shortfall amount owing to the Financier of Your Finance Contract should a covered event occur during the Period of Insurance as a consequence of which You wish to Hand Back Your Vehicle to the Dealer.
We pay all benefit payments directly to the Financier You have Your Finance Contract with.
The extent to which this Loan Termination Insurance responds is based on Your liability under Your Finance Contract
(subject to the application of certain policy benefit limits and exclusions as specified in the Policy).


CHOOSING THE LEVEL OF COVER & POLICY THAT MEETS YOUR NEEDS

Loan Termination Insurance has 3 types of covers available, 1: Gold Cover, 2: Platinum Cover, 3: Silver Cover
Within the Policy cover type there are up to 3 levels of cover available, referred to as:
Level 1; Level 2; and Level 3.
If You choose to purchase this insurance, the level of cover applicable to You will be shown on the Policy Schedule.


TABLE OF BENEFIT LIMITS FOR GOLD COVER


Cover Level



Cover Benefit Limit



Additional Monthly Payment Option



Maximum Policy Term



Level 1



We will pay up to

$10,000 for all claims under the Policy (including payments made under the Additional Monthly Payment option)



We will pay the lesser of:

· 6 Monthly

Repayments

; or

· $10,000



The lesser of the term of Your Finance Contract or

84 months



Level 2



We will pay up to

$10,000 for all claims under the Policy (including payments made under the Additional Monthly Payment option)



We will pay the lesser of:

· 3 Monthly

Repayments

; or

· $10,000



The lesser of the term of Your Finance Contract or

84 months

The table above shows the maximum benefit amount We will pay in relation to a claim for a Shortfall amount under each level of cover. The amount We will pay depends on the level of cover You have selected.

HAND BACK COVER

If You encounter or suffer from one of the following events during the Period of Insurance:

Trauma;
Disability;
Driving Restrictive Medical Condition;
Involuntary Unemployment;
International Job Transfer;
Bankruptcy (for the self-employed); or
Divorce

and as a consequence of the occurrence of the event You wish to Hand Back Your Vehicle to the Dealer, (and there is a positive Shortfall), then subject to the terms and conditions of the Policy We will pay the Shortfall amount (up to the benefit limit of the level of cover selected by You as set out below) to the Financier on Your behalf.
We will not make a payment under this Hand Back Cover if You have made a claim (and We have accepted the claim) under the Additional Monthly Payment Option within the previous 150 days.
We will reduce the amount payable under this benefit by the amount of any previous claims settled under the Additional Monthly Payment Option.

Other exclusions of cover may apply to this benefit. Please see the Cover Limitations, Eligibility Criteria, and exclusions sections in our product disclosure statement.

Level 1 & 2 Cover


Bankruptcy (for the self- employed)

Disability

Divorce

Driving Restrictive Medical Condition

International Job Transfer
Involuntary Unemployment
Trauma

We will pay the lesser of:

· The Shortfall due, or

· $10,000

A 60 day Non-Benefit Period applies to Disability and Involuntary Unemployment

ADDITIONAL MONTHLY PAYMENT OPTION BENEFIT LIMITS

Event

Level 1

Level 2

If You suffer a Disability during the Period of Insurance

We will pay the lesser of 6 Monthly Repayments or

$10,000

A 60 day Non Benefit

Period applies

We will pay the lesser of 3 Monthly Repayments or

$10,000

A 60 day Non Benefit

Period applies

If You suffer Involuntary Unemployment during the Period of Insurance

We will pay the lesser of 6 Monthly Repayments or

$10,000

A 60 day Non Benefit

Period applies

We will pay the lesser of 3 Monthly Repayments or

$10,000

A 60 day Non Benefit

Period applies

To find out more about our other Loan Termination Insurance products and how they can be of benefit to you, call us on1300 982 279and speak with one of our insurance specialist today.