Determining your premiums

The cost of cover is detailed in your loan agreement. The cost can be added to your loan for your convenience. The premium is calculated as a percentage of your loan and is based on the term. Your premium is inclusive of Insurance Premium Tax (IPT).

An unemployment insurance plan is designed to provide you with a source of income if you are unable to work due to illness or disability. The amount insured is normally paid by the insurance company on a monthly basis after one month from the end of the deferred period subject to certain limits.

On individual plans while monthly payments are being made the premium does not have to be paid. When you recover from your illness and are able to return to work monthly payments cease and premiums must be paid again.

The plan is set up to run for a period of years or to a future age and can cover you up to your planned retirement date. On individual plans the insurance can be set up to cover you for your own occupation or any occupation.

If you are covered for your own occupation the insurance company will not require you to seek other employment. If it is set up for any occupation you could be asked to find work which you are capable of doing but which is not your normal occupation.

The underwriting is fairly strict for this type of insurance and will take in to account your health, medical history, occupation, pastimes, sex, whether you smoke, term of years and the options you have chosen.