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Loan Protection Insurance

Loan Protection Insurance

What is Free Loan Protection?
Credit unions provide free life insurance on your credit union loan, one of the unique benefits of credit union membership. This means that in the event of your death, your credit union loan balance is paid off by this insurance so you needn't worry about passing on debt to your next of kin when you die.* To qualify for death benefit insurance you must be a Credit Union member and must have joined the Credit Union before your 70th birthday.

This benefit fulfils one of the credit union movement's unique principles of ensuring that the member's debt dies with them. It is a unique benefit to credit union members and would cost extra money with most other institutions.

What Does Loan Protection Cover?
Loan Protection insurance automatically covers 100% of credit union loans held by members aged between 16 and 80, to a maximum value of 7500. If your loan amount is higher than 7500, Loan Protection insurance will cover the first 7500 of the loan.

When does Loan Protection Not Apply?
Any new loan agreements are subject to a six month Pre-existing Condition Limitation. This means that should you die as a result of a pre-existing medical condition (for which medical advice, consultation or treatment was received), within 6 months of taking out your loan, Loan Protection insurance will not be applied. Loan Protection Insurance does not cover death due to HIV/Aids, Suicide, Terrorism or War.

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Central Liverpool Credit Union Tel: 0151 708 5515 Email: enquiries@centralliverpoolcu.co.uk Web: http://www.centralcu.co.uk/
Central Liverpool Credit Union is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority. FSA FRN: 213251