Loan & Savings Insurance
One of the great benefits of credit union membership is the free insurance provided on savings and loans and members frequently ask about it.
Loan Protection Insurance
Loan protection insurance is provided by your credit union for you, the member, at no extra cost. This means that your dependents will be protected against this debt in extreme circumstances. All loan balances are insured provided certain criteria are met.
This means that in the event of death, terminal illness, or a member becoming permanently disabled, then the insurance cover provides that the loan (up to certain limits) is repaid in full. Each member of the Credit Union is eligible for loan protection insurance if they meet the following criteria:
- Have not reached your 85th birthday.
- Have signed a promissory note when the loan is granted
- Are actually at work (or physically capable of carrying out the normal work duties)
- If not working but in good health
- Member is the first named on the account
Please note that even members who don't meet all of the above criteria may be eligible for loan protection insurance provided satisfactory evidence, e.g. A Certificate from a certified doctor, is submitted to the insurer.
In the case of joint accounts, the first named member shall be insured in respect of any loan. Cover applies only to the borrowing member whose signature appears first on the credit agreement.
Note: Members should not confuse Loan Protection Insurance (LPI)with Repayment Protection Insurance(RPI).
Life Savings Protection Insurance
Life savings insurance is the life assurance cover Thurles Credit Union provides for its eligible members (free of charge) as an additional incentive for members to save regularly with the credit union. The amount of insurance benefit to which a member is entitled is proportional to the amount of savings the member has and benefits are payable only on death of a member (some terms and conditions apply).
Savings Cover Limit
All Thurles Credit Union's member shares are insured up to a maximum of €3,000.
100% insured on balance or lowest balance thereafter
i.e. you will receive an extra 100% of your savings that are in your account up to a maximum of €5,000
75% insured on balance or lowest balance thereafter
i.e. you will receive an extra 75% of your savings that are in your account up to a maximum of €5,000
50% insured on balance or lowest balance thereafter
i.e. you will receive an extra 50% of your savings that are in your account up to a maximum of €5,000
25% insured on balance or lowest balance thereafter
i.e. you will receive an extra 25% of your savings that are in your account up to a maximum of €5,000
Effect of Withdrawals
- Withdrawals have a negative impact on Life Saving Benefit as claim is based on lowest share amount after the age of 55
- Amounts lodged after age 70 are not insured, however, withdrawals can affect benefits due
Note: It is worth remembering that it makes sense to leave your savings intact, especially as you get older. It can often make more sense to borrow money using your savings as security. This way you are covered twice in the event of your demise; your loan will be covered plus you will get a top up on your savings under the Life Saving Policy.
The Life Saving Policy payment will depend on the savings you made during the term of membership and the age that lodgements are made as specified in the Table of Benefits above.
