WA Personal Loan Insurance - Cover Loss of Job?

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Alex1363

Member
22 April 2015
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Hi Everybody,
I am writing in this forum to ask a question about personal loan insurance hopefully somebody can answer.

I have got a personal loan with one banks in Australia and I am paying that back monthly at the moment.

I am an Engineer and for some circumstances changed my job 2 weeks ago. The new work place has very unprofessional and bad environment (lots of fighting and swearing). Working in new place was a big shock for me and for last 2 weeks I was under too much pressure and it is effecting me mentally. I am coming to this conclusion to change my job but I have to pay my loan monthly. Finding another job can take few months.

I have loan insurance that cover me if I lose my job.

Can somebody please tell me if loan insurance cover this or not?

Thanks
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
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It's quite difficult to make any useful suggestions without seeing the actual documents,
but so far as I can....

Talk to the insurer.
The details of who the insurer is, and what is covered, will be in your loan paperwork.
If you can't find it, ask your lender.
Understand that the insurer may not be all that interested in the back story and reasons
why and how you are unhappy in your new job.
But they should be able to explain to you how the loan insurance works in your case.

Note that insurance cover for loans is usually about involuntary loss of a job.
If you lose your job voluntarily (that is, you resign), then the insurance may not cover that.

Note also that you may not be the insured. Usually, it is the lender who is the insured,
and you are actually paying their premium.
 
27 June 2015
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I totally agree with Tim that you need to contact to your insurer that will help you to get the details of your insurance coverage. Usually, Insurance companies pay Up to $80,000 cover for your loan repayments if you pass away and Up to 4 months cover if involuntarily unemployed ..
 
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