Life Savings Insurance
One of the great benefits of credit union membership is the free insurance provided on savings. In brief, upon the death of a member, his or her savings balance is increased. (subject to terms and conditions)
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). Ballaghaderreen & District Credit Union Ltd has opted to insure members’ shares up to a maximum of €12,700.
How it works
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|
|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|
Loan Protection Insurance
At Ballaghaderreen & District Credit Union Ltd, the outstanding loan balance of eligible members are automatically insured at no direct cost to the member. This means the loan debt will be cleared in the event of the members death. (Subject to terms and conditions).
Under the basic policy, insurance cover ceases on the members 70th birthday, however, Ballaghaderreen & District Credit Union Ltd has the “Over 70 Rider” which extends the cover until the members 85th birthday.
Cover will not apply until the loan is drawn down by the member and an actual indebtedness created, at which time for each loan, the conditions for eligibility shall apply. To be insured members must meet certain Insurance company requirements.
Disability cover under the loan protection policy is defined as a condition of health which renders the member totally and permanently unable to engage in any occupation. Disability must be medically determined. The insurer reserves the right to request the member to attend an independent medical examination. Disability cover ceases at age 60. Once a disability claim has been paid, the insurer’s liability for any future claims on behalf of that member in that or any other Credit Union is terminated, unless the member completes a declaration of health form on each occasion a loan is applied for and submits it for approval. If approved, the member will have cover for all illness and injuries except that for which disability benefit was paid.
Loans to clubs or societies are not insurable.
All of the above is subject to terms and conditions