LOAN REPAYMENT
PROTECTION (LRP)
Protecting loan repayments in the event of accident,
sickness or involuntary employment.
Loan Repayment Protection (LRP) covers a member's monthly loan repayments if they are unable to work due to accident, sickness, or involuntary unemployment. It is an affordable, inclusive protection product that directly benefits members at a difficult time - while also reducing the risk of loan arrears and bad debt within the credit union.
Who is this product for?
LRP is designed for Irish credit unions that wish to offer borrowing members an affordable layer of payment protection. The credit union is the policyholder; individual members opt in when taking out a loan. The product is simple to understand, integrates naturally into the loan process, and involves minimal paperwork for members.
What does this product cover?
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Monthly loan repayments covered if the member is unable to work for more than 30 consecutive days
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Three trigger events: Accident, Sickness, or Involuntary Unemployment
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Accident and Sickness benefit paid for up to a maximum of 24 months
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Involuntary Unemployment benefit paid for up to a maximum of 12 months
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Benefit is paid directly to the credit union to cover the member's scheduled repayment
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The product integrates into the loan agreement - few questions, minimal paperwork for members
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15% commission income generated at source for the credit union
What is not covered?
As with all insurance products, exclusions and limitations apply. Key exclusions include:
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Inability to work arising within the first 30 consecutive days (waiting period applies)
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Voluntary resignation, retirement, or any unemployment that is not involuntary
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Pre-existing medical conditions that the member was aware of before taking out the policy (subject to policy terms)
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Members who are self-employed may have different eligibility conditions - please contact us to discuss the options available
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Repayments on loans not included within the scope of the policy
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Benefit periods beyond the maximums stated above (24 months for A&S; 12 months for unemployment)
How does it work?
When a member becomes unable to work due to accident, sickness, or involuntary unemployment for more than 30 consecutive days, they can make a claim. The claimed benefit is paid directly to the credit union to cover the loan repayment on the relevant loan agreement. Members should be aware that loan repayments must continue to be made during the initial 30-day waiting period and until the claim is accepted - the policy benefit activates only after this waiting period has elapsed and the claim has been approved. This keeps the member's account in good standing during that period, avoids arrears, and removes a source of financial stress from the member at a very difficult time. The credit union earns 15% commission income at the point the policy is sold.
Who underwrites this product?
Loan Repayment Protection is underwritten by Maiden Life Försäkrings AB (Accident & Sickness cover) and Maiden General Försäkrings AB (Involuntary Unemployment cover), both registered in Sweden. Full underwriter details are provided in your policy documentation.
How are we paid?
CMutual earns commission for arranging this product. Credit unions also receive 15% commission income at point of sale. Full details are available in our Terms of Business.
Get in touch
To find out more or to request a quotation, contact our team:
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Phone: +353 1 5533500
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Email: [email protected]
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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.