LOAN REPAYMENT
PROTECTION (LRP)
Protecting loan repayments in the event of accident,
sickness or involuntary employment.
Loan Repayment Protection (LRP) provides borrowers with affordable,
inclusive & supportive repayment insurance in the event of an accident, sickness or involuntary unemployment
Why choose Loan Repayment Protection?
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If members do not have sufficient savings to rely on to service their debts, LRP could be the much needed financial support they need to ensure their repayments are met.
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Unpaid loan and credit card repayments could damage a member’s credit rating.
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Members could incur penalty charges, in the event of missed loan repayments, increasing their debt and making it more difficult to repay.
Benefits.
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Provides value for money for the member.
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The Credit Union is the Policy Holder.
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15% commission income at source for the Credit Union.
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Helps maintain regular loan repayments at a difficult time, reducing the risk of bad debts and delinquency.
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A product that is easy to understand and administer and is totally transparent.
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The member only has a few questions to answer and there is minimal paperwork and documentation.
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It is integrated into the loan process.
How does it Work?
Loan Repayment Protection covers the member in the event that they are unable to work for more than 30 consecutive days due to Accident, Sickness or Involuntary Unemployment.
The claimed benefit is paid directly to the Credit Union to cover the loan repayment on the loan agreement. Accident and Sickness benefit is paid to a maximum of 24 months and involuntary unemployment benefit is paid to a maximum of 12 months.