Loan Protection Insurance
Loan Protection Insurance is payable on the death of the eligible member, subject to policy terms and conditions. ASTICU provides automatic cover on the loan balances of all eligible members (up to certain limits)*. This service is provided free to the member and is paid for by the credit union as an operating cost. This cover is very beneficial to the member’s family and provides peace of mind to the member as the outstanding debt is cleared.
How does it Work?
- Loan Protection Insurance is a valuable, free-to-member, service that ASTICU provides to qualifying borrowing members. ASTICU pays the premium on this insurance cover.
- Subject to certain terms and conditions, loan protection cover against death is provided free-to-members on credit union loan balances for the scheduled duration of the loan.
- Subject to underwriting terms and conditions, as laid down by our insurance providers, the credit union insures loans that are scheduled to be completed before the member’s 85th birthday.
- When taking out a loan and to ensure adequate coverage, a member should take special care to:
- Discuss the Loan Protection Cover with the staff member and;
- Carefully read any declarations he or she is asked to sign, before signing them and;
- Answer any underwriting questions accurately.
*Terms & Conditions Apply. Subject to eligibility.