Repayment Protection Insurance
Accidents occur, illness can strike you down and, in today’s economic climate, and redundancies are becoming more common and can seriously affect your income. As a response to these perils your credit union has designed a valuable product especially for you.
Why choose 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?
A member can take out this policy if on the commencement date they are:
- Aged 18 years old or over and under 70 for the duration of the agreement.
- Ordinarily resident in the Republic of Ireland or the UK
- Actively working in the Republic of Ireland or in the UK for a minimum of 16 hours per week
or the equivalent of 70 hours per month and have been in continuous work for at least the previous six months.
- The customer or their partner/spouse is the first named person on the agreement.
- The agreement is for a minimum of 6 and a maximum of 120 monthly repayments.
- They are not aware of impending sickness, unemployment or critical illness.
Can I insure my existing loan?
Yes, as it is a monthly premium.
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) for the following periods:
- Accident (up to 24 months)
- Sickness (up to 24 months)
- Involuntary Unemployment (up to 12 months)
- Critical illness (lump sum payment – please ask your 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
- The cost is the same for all borrowers regardless of age or gender
- No medical is required when applying for this valuable protection
How much does repayment protection insurance cost?
The cost of repayment protection insurance is 8.99% of your monthly loan repayment.
What is the Breadwinner Clause?
A unique feature of the policy allows the unsalaried member to attach the insurance cover to their earning spouse/partner. If the member’s earning spouse/partner 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 most insurance contracts there are situations where the insurance company is unable to make payments. Here is a brief listing of some exclusions:
- Incapacity within 30 days of the start date
- Involuntary unemployment within 90 days of the start date
- Critical illness within 120 days of the start date
- Pre existing illness (any condition suffered in the twelve months before the first date you became unable to work)
- Prior knowledge of impending involuntary unemployment
- Voluntary redundancy
- Self inflicted injuries
- Alcohol/Drug related conditions.
How to claim?
- A claim form can be requested by ringing 1800 200 151