Many people join a credit union for savings accounts, loans, and day to day financial services. What some members may not realise is that credit union membership can also include valuable insurance benefits at no additional cost.
At Phoenix Credit Union, eligible members may benefit from Life Benefit Insurance, Loan Protection Insurance, and Accidental Death & Dismemberment Insurance. These benefits form part of the Member Insurance Programme and provide additional support for members and their families.
Insurance Benefits for Eligible Members
Phoenix Credit Union offers a range of insurance benefits to eligible members as part of the value of membership.
The Member Insurance Programme includes:
- Life Benefit Insurance
- Loan Protection Insurance
- Accidental Death & Dismemberment Insurance
These benefits are provided at no additional direct cost to eligible members.
Life Benefit Insurance
Life Benefit Insurance is life insurance cover arranged by the credit union for eligible members. It is designed to encourage regular saving and help members maintain savings with the credit union.
The amount payable is based on eligibility requirements and the member's savings balance at the date of death.
Who Is Eligible?
To qualify for Life Benefit Insurance:
- Members must join before their 71st birthday.
- Members must have a minimum of €380 in shares.
- All eligible members receive a minimum insurance benefit of €2,600.
- The maximum level of cover is €20,000.
- Cover is based on the balance held at the date of death.
- Lodgements made after age 70 remain insured.
Example
Mr Smith dies at age 59 with €5,000 in savings. The Life Benefit Insurance limit is €20,000.
Based on the applicable insurance scale, Mr Smith would be entitled to 75% of €5,000, resulting in a benefit payment of €3,750.
Loan Protection Insurance
Loan Protection Insurance is insurance cover provided on the lives of borrowing members.
This benefit means that, in the event of death, an eligible member's outstanding loan balance may be cleared subject to the terms and conditions of the policy.
The cover is provided by Phoenix Credit Union at no additional direct cost.
Cover Limits
The level of cover depends on the age of the member:
- Up to age 70: Maximum cover of €100,000
- Age 70 to 85: Maximum cover of €40,000
- Over age 85: No cover
The cover also applies to:
- Joint accounts, where both members are covered up to the applicable limits
- Written off loans, subject to the same cover limits
Exclusions
If a member dies within six months of receiving a loan as a result of a pre existing medical condition, the loan may not be covered under the Credit Union's policy.
In these circumstances, savings held by the member, together with any insurance benefit payable on those savings, may be used as security against the outstanding loan balance.
Example
Mr Smith dies at age 59 with an outstanding loan balance of €25,000.
As the loan balance is below the maximum cover limit of €100,000, a benefit of €25,000 would be paid and the outstanding loan would be cleared.
Accidental Death & Dismemberment Insurance
In addition to Life Benefit Insurance and Loan Protection Insurance, eligible members may also benefit from Accidental Death & Dismemberment Insurance.
This benefit provides an additional lump sum payment where death or certain specified injuries occur as the result of an accident. Cover is available to members aged 16 to 69 and is based on the Life Benefit Insurance benefit amount payable.
Benefit Matrix
The following benefits are payable as a percentage of the eligible Life Benefit Insurance amount.
100% Benefit
- Accidental death
- Loss of both hands
- Loss of both feet
- Loss of sight in both eyes
- Loss of one hand and one foot
- Loss of one hand and sight in one eye
- Loss of one foot and sight in one eye
50% Benefit
- Loss of one hand
- Loss of one foot
- Loss of sight in one eye
Like the other insurance benefits available through Phoenix Credit Union, this cover is provided at no additional direct cost to eligible members.
An Added Benefit of Membership
Insurance benefits are one of several advantages available to eligible Phoenix Credit Union members. Alongside savings and lending services, these protections provide additional support and reassurance for members and their families.
To learn more about Life Benefit Insurance, Loan Protection Insurance, Accidental Death & Dismemberment Insurance, or becoming a member of Phoenix Credit Union, visit www.phoenixcu.ie or speak with a member of the team.
