Loan Protection Insurance
Loan Protection Insurance is the insurance cover the Credit Union provides on the lives of its borrowing members.
Should an insured borrower die, or (under most contracts) become totally and permanently disabled for any occupation, the insurance cover provides that the loan is repaid in full. If a member who is eligible for insurance cover and has signed the promissory note dies with a loan outstanding, the loan balance is paid in full by the insurer.
You will be informed at the time of the loan application if your loan exceeds the amount covered by the credit unions policy. Under the basic policy death cover ceases on the members 70th birthday. The credit union has the option of extending this age limit to the members 85th birthday by affecting cover under the Over 70 Rider. Disability cover however ceases on the eligible members 60th birthday.
Life Savings Insurance
Life Savings insurance is another free benefit, an additional incentive to save with the Credit Union. This insurance payment is separate to the Loan Protection Insurance.
On death, a member’s shares are paid to the Nominee plus any Life Savings Insurance may also be payable, depending on the age of the member at the time of lodging shares into their account. Once you reach age 55, it is advisable to avoid withdrawing shares, in order to maintain your insurance entitlements. Consider a Credit Union loan instead. The maximum amount of Life Savings Insurance is €7,700.
The following table shows how your insurance builds up:
|Age Limit||Savings Balance||% of Savings Covered|
|Up to Age 55||Balance at age 55 or lowest balance thereafter||100%|
|Age 55 - 60||Savings lodged between age 55 - 60 or lowest balance thereafter insured||75%|
|Age 60 - 65||Savings lodged between age 60 - 65 or lowest balance thereafter insured||50%|
|Age 65 - 70||Savings lodged between age 65 - 70 or lowest balance thereafter insured||25%|
|Age over 70||0%|
Death Benefit Insurance
From the 1st of January 2020 there will be a change in criteria to be eligible for Death Benefit Insurance DBI Cover
To be eligible a Member must join before their 70th birthday and have a minimum share balance of €500 in their account at the date of death.
All eligible members of the Credit Union can apply for insurance covered under our Death Benefit Insurance Policy. This means in the event of your death, a lump sum of €1,300 will be paid to your family to help with the cost of funeral expenses, thereby easing the financial burden of bereavement.
Nobody enjoys talking or even thinking about their own mortality. However the simple fact is funerals are now extremely expensive and very few people realise the impact funeral bills will have on their lives. In recent years the average cost of a funeral has increased from €250 to over €3000. Death Benefit Insurance wont ease bereavement but it will go a long way towards easing the financial burden your death may place upon your family.
To apply for Death Benefit, please bring Death Certificate and funeral bill into your local branch.
Members aged over 16 years are required to complete a nomination form when they first join the Credit Union. The member nominates a person or persons whom they wish to receive the proceeds of their account in the event of their death. Members are advised to update the form, if their family or personal circumstances change. In any event, a member’s nomination ceases to be valid once they marry - members are advised to re-nominate as soon as possible after their marriage.
One of the major benefits to a member of saving with the Credit Union is that the members shares plus any insurance due on shares (to a value of €23,000), can be paid directly to a nominated person or persons upon death of the member with minimum delay and inconvenience. If a member has shares/insurances in excess of €23,000, the first €23,000 is paid to the nominated person with the balance going into the estate under probate, to be distributed under the terms of their will.