One of the great benefits of credit union membership is the free insurance provided on savings and loans and members frequently ask about it. In brief, upon the death of a member, his or her savings balance is increased and the outstanding loan balance is cleared so the family are not responsible for the debt (within certain limits and with certain conditions).
What is life savings protection insurance?
Life savings insurance is the life insurance cover a credit union provides for its eligible members (free of charge) as an additional incentive for them to save regularly in the credit union. The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has and benefits are payable only on the death of a member (some terms and conditions apply). New Ross Credit Union has opted to insure members’ savings up to a maximum of €12,700.
How does life savings protection insurance work?
The amount of insurance benefit, which an insurable member is entitled to, is in direct proportion to their savings and their age at the time the money is lodged. In your credit union account every €1 you save gains additional insurance in accordance with the following table:
|Age at time of Lodgement||Cover provides for|
|Up to six months||25c of insurance|
|Before 55||€1 of insurance|
|55 to 59 incl.||75c of insurance|
|60 to 64 incl.||50c of insurance|
|65 to 70 incl.||25c of insurance|
|Over 70||zero insurance|
At 55th Birthday Balance €2,000
At 60th Birthday Balance €3,000
At 65th Birthday Balance €3,500
At 70th Birthday Balance €4,000
At Date of Death (age 72) €4,500
Following the member’s death, his or her next of kin or nominated person will be entitled to the members savings of €4,500 in this example, plus an additional €3120.50 insurance payout, total €7620.50.
This amount is calculated by the Irish League of Credit Unions and is based on the age, and timing of savings made by the deceased member, prior to his/her death.
If you have any questions on this or any credit union insurance product please contact us at 051 421143 or email: email@example.com