Repayment Protection Insurance
Repayment Protection Insurance is an optional insurance policy that meets your loan repayments for a specic period of time, if you are forced out of work by any of the following events:
• Accident (cover up to 24 months)
• Sickness (cover up to 24 months)
• Unemployment (due to redundancy/business failure)
(up to 12 months)
• Critical illness (lump sum – certain illness may be excluded)
You can take out a Repayment Protection Insurance when you enter into a loan agreement or top up an existing loan with Killarney Credit Union.
What are the benefits of Repayment Protection Insurance?
The maximum monthly benefit payable under the policy is your loan repayment or €2,000 whichever is the lesser. The benefit is payable up to a maximum of 24 months for accident & sickness benefit or 12 months for involuntary unemployment. If you are diagnosed with specified critical illness a payment may be made under the policy.
The key benefits of the policy is that you don’t need to dip into your savings to keep up repayments when you are unable to work due to any of the conditions listed.
Other advantages are:• The breadwinner clause is included.• The same rate is applied to all borrowers.• No medical examination is required when applying.
How much does Repayment Protection Insurance cost?
The premium rate is 8.99% of the loan repayment. Therefore, if your loan repayment is €100 per month, the premium will be €8.99 per month that you pay. You will pay €100 loan repayment to your credit union and €8.99 to the insurance company. This payment has to be made by direct debit or standing order to the insurance company. Repayment Protection Insurance is provided by the Warranty Group which is regulated by the Central Bank of Ireland.
Interested, what to do next?
Speak to a staff member and enquire about a repayment protection insurance product.