Loan Protection Insurance
30 May, 2025A Simple Guide to Loan Protection Insurance
At First South Credit Union, we care about your peace of mind when it comes to borrowing money. That’s why most of our loans come with free Loan Protection Insurance – a benefit designed to give you and your loved ones financial security. This guide explains what Loan Protection Insurance is, who is covered, and how it works in a simple and straightforward way.
What is Loan Protection Insurance?
Loan Protection Insurance is a special safety net that comes with your credit union loan*. It clears the remaining balance of your loan if you pass away before it’s fully paid off.
The best part? You don’t have to pay for this cover. First South Credit Union covers the cost for you.
Why is Loan Protection Insurance Important?
If you have a loan and something unexpected happens, the last thing your loved ones should worry about is paying off debts. Loan Protection Insurance clears the remaining balance of your loan if you pass away, so your family won’t have to carry that burden.
This means you can borrow with confidence, knowing your loved ones won’t face added financial pressure.
Who Can Get Loan Protection Insurance?
You are eligible for Loan Protection Insurance if you meet these simple criteria when you borrow from us:
- You are under the age of 85.
- You are able to carry out your normal daily work or activities at the time you apply.
- Additional conditions may apply for larger loans, and sometimes you may need to fill out a short health questionnaire.
How Does it Work?
Loan Protection Insurance is automatically included when you take out a loan with First South Credit Union, as long as you meet the eligibility requirements.
If you pass away with an outstanding loan balance, the insurance pays off the loan in full, subject to terms and limits.
Want to Learn More?
Loan Protection Insurance is just one of the many ways we support our members here at First South Credit Union. If you have any questions about the cover or whether you’re eligible, we’re happy to explain further.
Get in touch with us today to learn more about Loan Protection Insurance and how it can benefit you and your loved ones. We’re always here to help!
*Terms and conditions apply.
