What is our Free Loan Protection?
Credit unions provide free life insurance on your credit union loan, one of the unique benefits of credit union membership. This means that in the event of your death, your credit union loan balance is paid off by this insurance so you needn't worry about passing on debt to your next of kin when you die.*
This benefit fulfils one of the credit union movement's unique principles of ensuring that the member's debt dies with them. It is a unique benefit to credit union members and would cost extra money with most other institutions.
What Does Loan Protection Cover?
Loan Protection insurance automatically covers 100% of credit union loans held by members aged between 16 and 80, to a maximum value of £10,000. If your loan amount is higher than £10,000, Loan Protection insurance will cover the first £10,000 of the loan.
When does Loan Protection Not Apply?
Any new loan agreements are subject to a six month Pre-existing Condition Limitation. This means that should you die as a result of a pre-existing medical condition (for which medical advice, consultation or treatment was received), within 6 months of taking out your loan, Loan Protection insurance will not be applied.
Loan Protection Insurance does not cover death due to HIV/Aids, Suicide, Terrorism or War.
*Terms and conditions apply