Repayment Protection Insurance

What is repayment protection insurance?

Repayment protection insurance is a optional policy which meets your loan repayments for a specified period of time if you are forced out of work by any of the following events:

  • Accident
  • Sickness
  • Involuntary Unemployment
  • Critical Illness
Why chose repayment protection insurance?

Accidents occur, illness can strike you down and, in today’s economic climate redundancies are becoming more common and can seriously affect your income.

As a response to these perils your credit union has designed a valuable product especially for you.

Who is eligible?

You can avail of this protection if:

  • You are aged 18 or over
  • You are under 70 for the duration of your agreement with your credit union
  • You or your spouse are in full time employment (working 16 hours or more a week or the equivalent of 70 hours per month) prior to the start date of cover
  • You enter into a new Loan Agreement or you top-up an existing loan
  • You work and live in the Republic of Ireland or the UK
  • You are not aware of any impending Incapacity, Involuntary Unemployment or Critical Illness at the start of the policy
Can I insure my existing loan?

You can only take out Repayment Protection Insurance when you enter into a new Loan Agreement or if you top-up an existing loan.

What are the benefits of repayment protection insurance?
  • Your main worries when borrowing are removed
  • Your loan repayments are made for you if you are off work due to accident, sickness, unemployment or critical illness (see exclusions) for the following periods:
    • Accident (up to 24 months)
    • Sickness (up to 24 months)
    • Involuntary Unemployment (up to 12 months)
    • Critical Illness (lump sum payment – please ask your credit union for more details, including a list of the illnesses covered)
    • You don’t need to dip into savings to keep up your repayments when you are unable to work due to any of the above conditions
    • The Breadwinner clause is included (see below)
    • The rate is the same for all borrowers
    • No medical is required when applying for this valuable protection
How much does repayment protection insurance cost?

The premium rate is 8.99% of the loan repayments. Therefore if the loan repayment is €100 per month, the premium will be €8.99 per month. You will pay €100 to your credit union and €8.99 to the insurer.

Premiums may vary depending on the loan annual percentage rate (APR) and the term of the loan.

What is the breadwinner clause?

A unique feature of the policy allows the unsalaried member to attach the insurance cover to their earning spouse/partner. If the member’s earning spouse/partner is unable to work due to any of the insured events, the member’s loan repayments will be met by the insurance cover.

Are there any exclusions?

As with most insurance contracts there are situations where the insurance company is unable to make payments. Here is a brief listing of some exclusions:

  • Sickness within 30 days of the start date
  • Unemployment within 90 days of the start date
  • Critical illness within 120 days of the start date
  • Pre-existing illness (any condition for which you received treatment in the 12 months prior to the start date or for which you have not consulted a doctor or received treatment in the 12 months before the first date you became unable to work)
  • Prior knowledge of impending unemployment
  • Voluntary redundancy
  • If you are a fixed term worker unless the contract comes to an end prematurely or your work is seasonal
  • Stress or mental disorders
  • Where you are unemployed or sick for less than 30 consecutive days, or where you have an accident and are unable to work for less than 30 consecutive days

A complete listing of the exclusions can be found in the policy document.

How to claim?
  • A claim form can be requested from The Warranty Group, 1800-200151
  • You should complete and return this form in accordance with the instructions contained within the policy document
  • Your claim form will be processed within five working days provided all necessary information is provided

When acting as an insurance intermediary St. Francis Credit Union Limited is regulated by the Central Bank of Ireland.

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