Many people choose to take out insurance cover to repay loans in the event of death or permanent disability. In CANA Credit Union the savings and loans of eligible members are automatically covered (up to certain limits) at no direct cost to the member.
What are the benefits?
In the event of death or permanent disability (see below for further details) any borrowing, which the member may have with the credit union, is cleared in full subject to certain limits and conditions which may apply.
This means that you can borrow from CANA in full confidence that your dependents will not be obliged to repay your loans in the event of your death or permanent disability.
It is important to note that the following age limits apply to Loan Protection insurance:
- Death Cover – up to members 80th birthday. Cover ceases on the borrowers 80th birthday irrespective of when the loan was taken out.
- Permanent Disability – cover ceases when the member reaches the age of 65.
Disability cover under the Loan Protection policy is defined as a condition of health which renders the member totally and permanently unable to engage in any occupation. Disabilty must be medically determined. Disability Cover claims must be accompanied by a Private Medical Attendant’s Report (PMAR).
ECCU are the underwriters of Loan Protection Insurance. Where the cover is not automatic, ECCU reserves the right to request further medical information or request the member to attend for a medical examination.
It is important that members accurately complete any request forms or declarations as any inaccuracies or misstatement of facts could result in a claim being declined.
Once any benefit has been paid by ECCU (the Underwriters) arising from a Disability suffered by a member, no further Loan Protection coverage shall be provided in relation to such a member by ECCU for death or disabilty unless ECCU confirms otherwise in writing to the credit union. Even if coverage is approved by ECCU such cover shall always exclude benefits for death or disabilty resulting from sickness or injury for which benefit was previously paid.