Life Savings / Loan Protection Insurance
Connect CU also offers all eligible members insurance services. All of this insurance cover is paid directly by the credit union and at no additional expense to the member. Read more about the types of insurance available to our members below.
Life Savings Insurance
Life Savings Insurance is the life insurance cover provided to Connect Credit Union members as member benefit i.e. at no direct cost to you and as an incentive to save regularly. Life Savings Insurance is payable on the death of the eligible member, subject to policy terms and conditions.
The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has made during the term of membership, and depends on the member’s age at date of lodgement.
Subject to a maximum of €5,000, every €1 you save before the age of 55 provides €1 of insurance. So, if you an eligible member aged 54 with €2,000 saved in the credit union passes away, an insurance benefit of €2,000 will be paid out on your death. This is subject to the eligibility terms and conditions.
Once a member is over 55 years of age, each €1 you saved with the credit union provides the following insurance benefit:
- €1 saved between 55 - 59 years of age provides 75c insurance benefit.
- €1 saved between 60 - 64 years of age provides 50c insurance benefit.
- €1 saved between 65 - 69 years of age provides 25c insurance benefit.
No insurance is payable on amounts saved after your 70th birthday.
Once earned, your insurance remains in force as long as the member leaves the savings in the credit union. Withdrawals may affect the amount payable.
Your savings are eligible for insurance cover if they were lodged:
- before your 70th birthday,
- when you were actively at work and regularly performing all the usual duties of your occupation or when you were in good health, and
- further terms and conditions can apply.
In addition Connect Credit Union extends 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.
Loan Protection Insurance
One of the attractions of a loan with the Connect Credit Union is free Loan Protection Insurance. It repays the balance 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 Connect Credit Union, 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 80th 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
- The total and permanent disability must be medically determined
- The total and permanent disability must commence before the 65th birthday