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LOAN PROTECTION
INSURANCE

When the unthinkable happens, the debt shouldn't pass with it

Loan Protection Insurance is a group life insurance policy that repays a member's outstanding loan balance to the credit union in the event of the member's death. It protects your credit union's financial position, eliminates a potential burden from a grieving family, and reinforces the credit union ethos of putting members first.

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Who is this product for?

Loan Protection is designed for Irish credit unions that provide loans to members. The credit union is the group policyholder; individual members are covered automatically as part of their loan agreement. The product can be tailored to your specific loan book, lending strategy, and membership profile.

What does this product cover?

  • Repayment of the outstanding loan balance in the event of a member borrower's death

  • The benefit payable is based on the outstanding loan balance at the time of death, up to a maximum set by the credit union

  • No complex medical underwriting - Pre-existing Condition Limitations (PCL) replace traditional Declaration of Health (DOH) requirements

  • Each programme is individually designed to reflect the credit union's term, loan types, loan sizes, and borrower eligibility

  • Protects the credit union's financial position by eliminating bad debt arising from member death

  • Removes a significant financial burden from the member's family at an extremely difficult time

What is not covered?

As with all insurance products, exclusions and limitations apply. Key exclusions include:

  • Loan balances exceeding the maximum benefit level set within the policy

  • Borrowers outside the eligible age range defined within the credit union's policy terms

  • Loans or repayments not included within the scope of cover as agreed at policy inception

  • Pre-existing conditions subject to limitation under the PCL terms (full details provided in policy documentation)

How does it work?

Loan Protection is a group insurance policy paid for by the credit union, covering all eligible member borrowers. When a covered member dies, the credit union submits a claim for the outstanding loan balance. The claim benefit is paid to the credit union, not to the member's estate, and is used to clear the outstanding debt. This removes the loan from your books and ensures that no debt is inherited by the member's family.

Who underwrites this product?

Loan Protection is currently underwritten by Aviva Life and Pensions Ireland DAC. Claims on policies incepted under previous arrangements may continue to be processed under Utmost PanEurope DAC cover for a transitional period. The applicable arrangement applicable to your credit union’s group policy will be confirmed in your policy schedule.

How are we paid?

CMutual earns commission and/or administration fees for arranging and managing your insurance, included within the premium. Full details are available in our Terms of Business.

Get in touch

  • To find out more or to request a quotation, contact our team:

  • Phone: +353 1 5533500

  • Email: [email protected]

  • Or use the contact form on this page

CMutual arranges insurance on a limited analysis of the market basis. We work with a defined panel of underwriters and do not compare all products available in the wider market. No cover is in place until a policy schedule has been issued to you in writing. Full details are in our Terms of Business.

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