Loan Protection

One of the attractions of a loan with the Credit Union is free Loan Protection Insurance. It repays the balance the loan in the event of a member’s death. Cover is available for those in good health or carrying out normal occupational duties at the time the loan is granted.

What is Loan Protection Insurance?

In Naas 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 member’s death. Members can take out a credit union loan in the full confidence that their dependents will not have to pay the loan off on death or (under most contracts) total and permanent disability for any occupation. Banks and other financial institutions charge a separate insurance premium on top of loan repayments for this service.

Age Limits

Under the basic policy, insurance cover ceases on the member’s 70th birthday. However, Naas Credit Union specially extends this cover for members to cover until a member reaches their 85th Birthday. Members over 16 years of age who were not eligible for insurance cover (because they were in ill health at the time a loan was granted to them) can be insured up to an amount of €8,000.

Insured Member

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. Loan Protection Insurance is payable on the death of the eligible member, subject to policy terms and conditions.

• The insurance benefit payable is the amount of the member’s outstanding loan balance • Cover ceases on the member’s 85th birthday.
• The cover extends to include total and permanent disability from any occupation. In the event of the member becoming totally and permanently disabled for any occupation then the benefit will be paid.
  
  1. The total and permanent disability must be medically determined.
  2. The total and permanent disability must commence before the 60th birthday

Disability Cover

Disability cover applies to a member’s loan and clears the balance in full in the event of permanent disability. Disability is defined as a certified condition of health that renders the member totally and permanently disabled to carry out any occupation. Claims under this heading must be accompanied by a private medical Attendant’s report (PMAR) form. The maximum cover is €40,000 and cover ceases at 60 years of age.