What is Loan Protection Insurance?
In New Ross Credit Union, the outstanding loan balances of eligible members are automatically insured at no direct cost to the member. This means the loan debt will be wiped clean in the event of the members death. Banks and other financial institutions charge a separate insurance premium on top of loan repayments for this service. You can take out a credit union loan in the full confidence that your dependants will not have to pay it off should you die or suffer total and permanent disability for any occupation. Note: Terms and Conditions Apply
Under the basic policy, insurance cover ceases on the member’s 70th birthday. However, New Ross Credit Union has the “Over 70 Rider” which extends the cover until the members 85th Birthday.
Cover will not apply until the loan is paid to the member and an actual indebtedness created, at which time for each loan, the conditions for eligibility shall apply. To be insured members must meet certain insurance company requirements.
Disability cover under the loan protection policy is defined as a condition of health which renders the member totally and permanently unable to engage in any occupation. Disability must be medically determined. The insurer reserves the right to request the member to attend an independent medical examination. Disability cover ceases at age 60. Once a disability claim has been paid, the insurer’s liability for any future claims on behalf of that member in that or any other Credit Union is terminated, unless the member completes a declaration of health form on each occasion a loan is applied for and submits it for approval. If approved, the member will have cover for all illness and injuries except that for which disability benefit was paid.
Loans to clubs or societies are not insurable.
The provision of free insurance on loans makes the credit union keenly competitive compared to other lending agencies and contributes in a significant way to the peace of mind of its members.
Note: Terms and Conditions Apply