Credit unions exist to serve their members, not to profit from their needs. As member-owned, community-based financial cooperative, credit unions are guided by the principles of mutual help, financial wellbeing and social responsibility. Put simply, credit union care for their members.

Loan Protection cover reflects this ethos. It is a real demonstration of the credit union's commitment to the lifelong financial security and welfare, not only of its members but of their nearest and dearest.

If a person with a bank loan passes away, the debt is not automatically cleared. Instead, it becomes part of their estate (the total assets and liabilities they leave behind). The executor of the estate/ will is responsible for ensuring debts are settled before any inheritance may be distributed.

When you apply for a credit union loan, your credit union will explain the loan protection cover and will check your eligibility with you before the loan is granted. For the vast majority of members, this process is very quick and automatic.

In some instances, because your loan is for a large amount or you because you are currently seeing a medical consultant due to an illness, we will need to gather more medical information from you.

All credit unions with the Irish League of Credit Unions provide Loan Protection death cover to their borrowing members, but some credit unions protect their member even further by providing their members with free Total & Permanent Disability cover on their loan.

This means if an eligible member who is repaying their loan is left in a medical state which leaves them unable to perform their own occupation or unable to perform any other occupation for the rest of their lives, then a credit union with this additional loan disability cover can submit a claim to have your medical case reviewed. This cover is subject to policy terms & conditions of cover, age limit and maximum cover limits.

When borrowing from your credit union, a member is eligible for loan protection cover if:

• they are over 16 and under 70 years of age. (check with your local credit union, many credit unions have extended the 70 age limit to before age 80 or 85) and,

• the borrower also needs to confirm that they can actively and regularly perform all the usual duties of their occupation.

Most members applying for a loan will be fully eligible for loan protection cover. A credit union loans officer may need to discuss your loan eligibility with you during the loan application process due to the size of your loan(s) and can explain the policy terms & conditions and cover limit that might apply.

No. Loan protection cover is provided by credit unions affiliated to the Irish League of Credit Unions to their members at no direct cost. It’s just another great benefit of being a credit union member.

All credit unions affiliated to the Irish League of Credit Unions (ILCU) take out loan protection insurance on behalf of their members with ECCU Assurance DAC.

ECCU has been insuring the loans and savings of ILCU credit unions in the Republic of Ireland and Northern Ireland for over 45 years. The company is regulated by the Central Bank of Ireland and also has a Branch in Northern Ireland.

Each year, thousands of credit union members across the island of Ireland are protected by loan protection insurance, provided by ECCU Assurance DAC to credit unions.

Example 1

John, age 25 from Donegal had a car loan from his local credit union. At the time of his death, a total amount of €10,000 was outstanding on the loan. His credit union with their Loan Protection cover submitted a death claim to the credit union insurer, ECCU Assurance DAC and John’s loan was cleared.  

Example 2

Margaret, age 75 from Belfast had a home-improvement loan from her credit union. At the time of her death, a total amount of £1,350 was outstanding on the loan. Her credit union had Loan Protection cover up to age 80 as a member benefit, so the full balance of Margaret’s loan was cleared.