Loan Protection Insurance
One of the ways your local credit union aims to reduce our members’ financial worries is through the provision of FREE Loan Protection Insurance on eligible loans.
Should an insured borrower die, or (under most contracts) become totally and permanently disabled for any occupation, the insurance cover provides that the loan is repaid in full. If a member who is eligible for insurance cover and has signed the credit agreement dies with a loan outstanding, the loan balance is paid in full by the insurer.
You will be informed at the time of the loan application if your loan exceeds the amount covered by the credit union’s policy. Under the basic policy, death cover ceases on the member’s 70th birthday. Our credit union has extended this age limit to the member’s 85th birthday. Disability cover however ceases on the eligible member’s 65th birthday.