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Loan Protection Insurance |
In Tipperary 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. 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 (under most contracts) total and permanent disability for any occupation. Age Limits Under the basic policy, insurance cover ceases on the member’s 70th birthday. However, Tipperary Credit Union has the “Over 70 Rider” which extends the cover until the members 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 €4,000. Insured Member Only one member shall be insured in respect of any one loan. Cover applies only to the borrowing member whose signature appears first on the credit agreement. 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. |
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Disability
Disability 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