Accidents occur, illness can strike you down, redundancies can and do happen and can seriously affect your income. As a response to these perils your credit union has designed a valuable product especially for you, the member.
What is repayment protection insurance?
Repayment Protection Insurance is a policy which meets your loan repayments for a specified period of time if you are forced out of work by any of the following events:
- Involuntary Unemployment
- Critical Illness
Who is eligible?
You can avail of this protection if:
- You are aged 18 or over and will be less than 70 when the policy ends.
- You or your spouse are in full time employment (working 18 hours or more a week).
- You are a permanent resident in Ireland.
- You are not aware of any impending Incapacity, Involuntary Unemployment or Critical Illness at the start of the Policy.
Can I insure my existing loan?
Yes, you can avail of repayment protection insurance by topping up your loan for the premium amount.
What are the benefits of repayment protection insurance?
- Your major worries when borrowing are removed.
- Your loan repayments are made for you if you are off work due to accident, sickness, involuntary unemployment or critical illness (see exclusions below) for the following periods:
– Accident (up to 60 months)
– Sickness (up to 60 months)
– Involuntary Unemployment (up to 12 months)
– Critical Illness (lump sum payment – please ask at credit union for more details)
- You don’t need to dip into your savings to keep up your repayments when you are unable to work due to any of the above conditions.
- The Breadwinner clause is included (see below).
- The cost is the same for all borrowers regardless of age or sex.
- No medical is required when applying for this valuable protection.
How much does repayment protection insurance cost?
A typical example of the cost of Repayment Protection Insurance is illustrated below:
For a loan of €5,000 over 3 years your weekly repayment without repayment protection insurance would be €37.39 compared to a weekly repayment with repayment protection insurance of only €40.72
That’s a difference of only €3.33 a week. Repayments based on an APR of 11.06%
What is the Breadwinner clause?
A unique feature of the policy allows the unsalaried member attach the insurance cover to their earning spouse. If the member’s earning spouse is unable to work due to any of the insured events, the member’s loan repayments will be met by the insurance cover.
Are there any exclusions?
As with all insurance contracts there are situations where the insurance company is unable to make payments. Here is a brief listing of some exclusions:
- Pre existing illness (any condition suffered in the past 12 months)
- Prior knowledge of impending redundancy
- Voluntary redundancy
- Self inflicted injuries
- Alcohol/Drug related conditions.
A complete listing of the exclusions can be found in the Policy Document.
How to claim?
- A claim form can be found at the back of your RPI policy document.
- You should complete and return this form in accordance with the instructions contained within the policy document.
- Your claim form will be processed within three working days provided all necessary information is provided.