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Loan Termination Insurance (LTI)

Often without warning, your financial situation can change dramatically. A long term illness or perhaps an accident can put you out of action for many months.

At some point it may prove difficult to make payments on your car loan and your only option is to hand back the car 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.

eric’s LTI can cover this shortfall, depending on the cover chosen.

Key Benefits


Disability or Involuntary Unemployment

If you encounter or suffer from one of these events during the period of cover and as a result you wish to Handback your vehicle to the dealer, providing there is a Shortfall, then eric will pay the Shortfall amount to the financier up to the benefit limit of the level of cover you selected.

A Shortfall is the difference between the amount owed to the financier and the greater of;

  • the value of the vehicle as reasonably determined by eric as the trade value of the current edition of the Glass’s AutoEdge (for a Vehicle which is the equivalent age, make, condition and model as your vehicle), and
  • the price paid by the dealer following the Handback.

If you wish to RETAIN your vehicle – Monthly Payment Option Benefit

As an alternative to the Handback of your vehicle to the dealer, you can choose to use the Monthly Payment Option Benefit to contribute towards your monthly repayments under your loan. This benefit can be used for up to 6 monthly repayments, limited by the cover level benefit for the level of cover you have selected.

Following use of this benefit, you may still choose to Handback your vehicle, should you still be unable to perform your employment.


  • Eligible applicants must be:
    • In good health and aged 18 to 64 years.
    • Working for at least 20 hours per week in either continuous permanent, part-time or casual employment. If casual employment, you need to be with the same employer for at least 12 months.
    • Employed in non-seasonal, continual or steady positions.

Find Out More

The information on this page is a summary only. For full terms, conditions, exclusions and key factors that influence the cost, please refer to the Product Disclosure Statement (PDS).

Ask your dealer or broker today!

Loan Termination Insurance (LTI) is only distributed by our Authorised Representatives. Ask your dealer or broker today if they are an eric Authorised Representative.

Frequently Asked Questions

How do I go about cancelling my policy?

You can cancel your policy by phone, email, or by writing to us. You can also use our form on the Contact Us page to submit a cancellation request. After receiving your request, we will then confirm the cancellation of your policy to you.

Can I give someone authorisation to discuss my policy or make changes on my behalf?

Any person can be authorised to amend the policy as long as they have written permission from the main insured to do so. Authorisation can be provided via e-mail to quoting the policy number, or via mail to PO Box 9106 Scoresby Victoria 3179.

How do I update my direct debit details for the payment of policy premiums?

You can contact us directly via e-mail at or via phone on 1800 999 977.


Loan Termination Insurance (LTI) is issued by Eric Insurance Limited ABN 18 009 129 793 AFSL 238279 (eric). This website may contain general financial product advice that does not take into account your personal financial circumstance.