Crossmaglen Credit Union Limited also offers all eligible members insurance services. Some of these insurance services are paid for directly by the credit union and others are paid directly by the member. The insurance cover currently provided for by Crossmaglen Credit Union Limited in respect of eligible members is:
- Loan Protection
- Life Savings Insurance
- Death Benefit Insurance
Loan Protection Insurance
One of the attractions of a loan with the Crossmaglen Credit Union Limited is that Loan Protection Insurance is provided to all eligible members at no direct cost to them. 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 Crossmaglen Credit Union Limited, 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
- 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.
- The total and permanent disability must be medically determined
- The total and permanent disability must commence before the 85th birthday
Life Savings Protection
Life Savings Insurance is the life insurance cover provided to Crossmaglen Credit Union Limited members as a member benefit i.e. it is provided 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. Essentially, as well as receiving the savings built up, an additional lump sum will also be paid.
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.
Amounts saved after the 70th birthday are not insured. However, cover built up before the 70th birthday remains in force after the 70th birthday as long as the savings are left in the credit union. Withdrawals may affect the amount of insurance payable in the event of a claim.
Some credit unions 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 lodgments are made.
Death Benefit Insurance
All eligible members of the Credit Union qualify under our Death Benefit Insurance Policy. This means in the event of your death, a lump sum of £1,500 will be paid to your family to help with the cost of funeral expenses, thereby easing the financial burden of bereavement. This is provided at no direct cost to the member.
Nobody enjoys talking or even thinking about their own mortality. However the simple fact is funerals are now extremely expensive and very few people realize 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 won’t ease bereavement but it will go a long way towards easing the financial burden your death may place upon your family.
To qualify for death benefit insurance you must be a Credit Union member with a minimum balance of £25 in your share account and must have joined the Credit Union before your 70th birthday.