Insurance

One of the attractions of a loan with Connemara Credit Union Ltd is free Loan Protection Insurance. It repays the balance of the loan in the event of a member’s death. Cover is available for those in good health or carrying out normal occupational duties at the time the loan is granted.

What is Loan Protection Insurance?

In Connemara Credit Union Ltd, the outstanding loan balances of eligible members are automatically insured at no direct cost to the member. This means the loan debt will be wiped clean in the event of the member’s death. Members can take out a credit union loan in the full confidence that their dependents will not have to pay the loan off on death and total and permanent disability for any occupation. Banks and other financial institutions charge a separate insurance premium on top of loan repayments for this service.

Loan Protection Insurance is payable subject to policy terms and conditions.

• The insurance benefit payable is the amount of the member’s outstanding loan balance
• Cover ceases on the member’s 85th birthday
• The cover extends to include total and permanent disability from any occupation. In the event of the member becoming totally and permanently disabled for any occupation then the benefit will be paid
  • a. The total and permanent disability must be medically determined
  • b. The total and permanent disability must commence before the 60th birthday

What is Life Savings Protection insurance?

It is the life insurance cover your credit union takes out for all eligible members as an additional incentive to save regularly and maintain savings with the credit union.

What are the benefits?

With Life Savings insurance, a benefit is calculated and added to a member’s total assets with the credit union upon that member’s death. The amount they receive will depend on the age and savings history in the credit union.

The insurance benefit is subject to a maximum benefit set by the credit union, which, in the case of Connemara Credit Union Ltd. this limit is currently €7,700.

The cover is as follows:

Up to Age 55	Savings balance at age 55 or lowest balance thereafter until date of death, are insured at 100%.
Age 55-60	Savings lodged between age 55-60, or lowest balance thereafter until date of death, are insured at 75%
Age 60 – 65	Savings lodged between age 60-65, or the lowest balance thereafter until date of death, are insured at 50%
Age 65 – 70	Savings lodged between age 65-70, or lowest balance thereafter until date of death, are insured at 25%
Over 70	No insurance is payable on amounts saved after your 70th birthday, but insurance earned up to 70 remains intact if shares are not withdrawn.

 

NB. Share withdrawals after the age of 55 will affect the level of insurance benefit received

Once earned, your insurance remains in force as long as you leave your savings in your credit union. Withdrawals may affect the amount payable.

Nomination (Beneficiary)

When joining Connemara Credit Union Ltd. each member will be asked to nominate someone to be the beneficiary of their savings in the event of their death. The Credit can pay out a maximum of €23,000 to a nominated beneficiary without recourse to probate. Excess over this amount will be paid to your estate.

It is important to ensure that your nominated beneficiary information is up to date

Connemara Credit Union Ltd extend cover to include the “Accidental, Death and Dismemberment” Rider. Under this extension the amount of the Life Savings claim is doubled if the member dies as the result of an accident. Also if the member looses a limb or sight as the result of an accident then a benefit may be paid to member. The amount of the benefit is based on the savings that the member makes during the term of membership and the age that lodgements are made.

Under Credit Union Rule 22 (now amended to Rule 19) if your account becomes inactive for 3 years and we are unable to contact you within that period it may become a dormant account. It is in your own interest to keep it active by conducting regular transaction.

The account maybe reactivated by conducting transactions and supporting it with photographic I.D. e.g. passport/drivers licence/birth certificate for children and confirmation of address (not more than 3 months old) e.g. utility bill/revenue documentation.

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