Insurance
Loan Protection Insurance is the insurance cover the Credit Union provides on the lives of its borrowing members.
Should an insured borrower die, or (under most contracts) become totally and permanently disabled for any occupation, the insurance cover provides that the loan is repaid in full. If a member, who is eligible for insurance coverage and has signed the promissory note dies with a loan outstanding, the loan balance is paid in full by the insurer.
You will be informed at the time of the loan application if your loan exceeds the amount covered by the credit unions policy. Under the basic policy, death cover ceases on the member's 70th birthday. The credit union has the option of extending this age limit to the member's 85th birthday by affecting cover under the Over 70 Rider. Disability cover, however, ceases on the eligible members 70th birthday.
All eligible members of the Credit Union can apply for insurance covered under our Death Benefit Insurance Policy. This means in the event of your death, a lump sum of £1000 will be paid to your family to help with the cost of funeral expenses, thereby easing the financial burden of bereavement.
Nobody enjoys talking or even thinking about their own mortality. However the simple fact is funerals are now extremely expensive and very few people realise the impact funeral bills will have on their lives. In recent years the average cost of a funeral has increased from £3500 to over £4500. Death Benefit Insurance wont 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 and must have joined the Credit Union before your 70th birthday.
Insurance Report for year 2020-2021
One of the great advantages of being a credit union member is that Life saving and loan protection are provided free of charge to all eligible members i.e..
Those under the age of 80 can borrow from the credit union in confidence that their dependants will not be obliged to repay any outstanding loan balance if they were to die. The Insurance cover ceases on the members 80th birthday.
Death benefit insurance is designed to relive the burden of funeral expenses is also available to eligible members through the credit union. The cost of DBI varies yearly but provides cover of 1000 on the death of a member. This money is paid to-
- The nominee
- Whoever paid funeral expenses
- Directly to the undertaker
Insurance cover for loans above £6000 is subject to members having signed the appropriate health declaration. For members over 70 all loans over £6000 must be approved by ECCU insurance subject to members having signed the appropriate ECCU declaration of health.
At present all eligible members are covered by this insurance unless they gave stated otherwise.
Aisling McGullion
Insurance Officer
Check you are eligible for membership before applying.
