Loan Protection Insurance

Loan Protection Insurance

Protecting your loan against unforeseen events is a cost effective and sensible thing to do!

 

Having your loan repaid in the event of your death means your family won't have to worry about the repayments themselves. They'll have enough to deal with as it is.

We can also help cover your loan repayments if you are unfit to work or if you've been made redundant or bankrupt.

Claims are processed quickly and premiums reduce each month as your loan balance reduces.

Cover can be applied for at the time of your loan so talk to your lending consultant about which covers may be right for you. Cover is optional and subject to underwriting.

Simply contact us if you have any questions, we're here to help.

Cover Summary

 

  • Death benefit - life insurance to the value of the loan outstanding
  • Disability benefit – payment of loan instalments if unfit for work for 7 days or more
  • Critical Illness benefit – lump sum payment of $10,000 for a trauma event
  • Redundancy benefit – payment of 6 months loan instalments if made redundant
  • Bankruptcy benefit – payment of 6 months loan instalments if made bankrupt
  • Hospital Cash benefit – daily payment if hospitalised for 7 nights or more

 

You can view the Loan Protection Certificate here.

 

IMPORTANT INFORMATION - LOAN PROTECTION INSURANCE PREMIUM (LPI) ERRORS

Errors have occurred in the calculation of our LPI meaning some premiums have been overcharged and undercharged.

Where overcharging has occurred, a full refund of the overcharged premium (plus interest) has been made to the affected loan on July 30th. If no current loan exists, the refund has gone to a savings account.

Where undercharging has occurred, we are not seeking a repayment but the premium has been corrected for the next LPI payment which occurs on August 1st.

If you require further information please refer all queries to the email address below or contact our Call Centre on (07) 8344810.

lpirefunds@firstcu.co.nz

We apologise for any inconvenience this has caused our members.

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Important Information

We wish to advise members that as of the 1st of June 2018 members with Loan Protection Insurance are insured with First Insurance Ltd, a fully owned subsidiary of First Credit Union.  There are some beneficial changes to the covers offered and members already insured have their covers upgraded at no extra cost. 

FINANCIAL STRENGTH RATING

FIRST CREDIT UNION LOAN PROTECTION INSURANCE is underwritten by First Insurance Limited. First Insurance Limited has a BB+ (stable) insurer financial strength rating issued by Fitch Ratings in May 2018 and affirmed by Fitch Ratings in December 2018.

Fitch Ratings Insurer Financial Strength Ratings Scale: AAA:  Exceptionally Strong |  AA:  Very  strong  |  A:  Strong    |  BBB: Good| BB: Moderately weak B: Weak |  CCC:  Very weak  |  CC:  Extremely weak  |   C: Distressed.

SOLVENCY

As at 31 December 2018, the Minimum Solvency Capital required to be held by First Insurance Limited under the Reserve Bank of New Zealand’s Solvency Standard was $5,000,000. The Actual Solvency Capital held by First Insurance Limited was $6,050,582, representing a Solvency Margin of $1,050,582 and a Solvency Ratio of 121%.

Actual Solvency Capital

$6,050,582

Minimum Solvency Requirement

$5,000,000

Solvency Margin

$1,050,582

Solvency Ratio

121.0%