Mortgages or loans are often long term commitments, so it makes sense to protect them with Loan Repayment Protection Insurance.
Loan Repayment Protection provides you with the peace of mind that if an unfortunate event, such as your death, disability, involuntary unemployment or trauma occurs, your assets will be safe and your loan repayments will be taken care of.
Underwritten by CUNA Mutual Group, this insurance not only covers your loan repayments; it may even pay out your loan for you, with affordable premiums packaged into your loan.
Options
Death benefit
In the event of death, the insurer will pay the outstanding balance of your loan contract at the date of death (excluding any loan repayments two months or more in arrears), to a maximum of $250,000.
Disability Benefit
If you are unable to work because you have suffered an injury or sickness, the insurer will pay your repayments as shown on your policy schedule, for each payment period that you are disabled provided that:
- The disability continues for at least 15 consecutive days from the date you first seek medical attention for the injury or sickness which causes the disability; and
- The monthly benefit is no more that $1,500.
Involuntary Unemployment Benefit
If you are unable to continue your permanent employment as a direct result of involuntary dismissal or retrenchment by an employer, the insurer will pay the repayment as shown on your policy schedule, to a maximum of $1,500 per month after the 14 day waiting period for each period of involuntary unemployment you experience for up to 3 months in any 12 month period to a maximum of $5,000 during the period of insurance.
Trauma Benefit
If you suffer a trauma, the insurer will pay to you the lesser of the amount you nominate in the application and the outstanding balance of your loan contract at the date you suffered the trauma. You may nominate a figure from $10,000 to $50,000 (in multiples of $10,000). Only one claim will be paid during the period of insurance and no claim will be payable in the first 90 days of cover.
Questions?
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