With more than a million members in the State and assets of more than £2 billion, the Irish League of Credit Unions is a major provider of savings and loans. Its latest service to members is the introduction of repayment protection insurance (RPI) in the event of illness or redundancy.

The new optional insurance works in the same way as conventional RPI offered by banks and building societies to cover loans and mortgages. This contract, underwritten by Consolidated Financial Insurance provides cover for the duration of the loan in the event of accident or sickness (or until the member returns to work).

It also provides 12 months maximum cover in the event of redundancy, and critical illness cover which pays off the outstanding balance of the loan for members who are self-employed or state employees.

The list of critical illnesses is limited just five main illnesses (stroke, cancer, heart attack, major organ transplant and renal failure) and maximum monthly benefits are £750.

One of the attractions of this insurance is that it is being extended to non-working members who have taken out loans. The benefits are paid if their working spouses or partners fall ill or lose their jobs. The cost of the Credit Union RPI amounts to £6.41 extra per month on a standard £3,000 loan discharged over 24 months.

Other credit union insurances include death benefit, travel insurance, motor and home insurance and a number of other insurances, including serious illness and professional indemnity insurance for Credit Union staff and officers.