Insurance Further Information | Savvi Credit Union

WHAT IS LOAN PROTECTION INSURANCE AND IS THERE A CHANGE TO THE LOAN PROTECTION INSURANCE?

Loan Protection Insurance is a life cover on the vast majority of loans issued by the credit union, so you can borrow in confidence knowing that your family will not have to repay any outstanding loan balance (up to certain limits) in the event of your death. This insurance also covers joint accounts where both members are insured on the one loan (dual life cover), protecting you both.

There will be no change to the loan protection insurance cover that is currently offered.

AM I ELIGIBLE FOR DBI AND SHARE INSURANCE?

You are eligible for both if:

  • You joined the credit union before age 70, while in good health or while actively and regularly carrying out your normal occupation or duties and,
  • You continue to be a member of the credit union and maintain the minimum amount of savings in your account as required by the credit union for inclusion.

How is DBI calculated?

  • The Death Benefit is a fixed sum of €3,250, subject to eligibility. Death Benefit Insurance will reduce from the set amount of €3,250 to €1,950 as at March 1 st , 2019.
  • A death certificate and funeral bill is required in order to pay out the fixed sum.

How is Share Insurance calculated?

In the event of a member’s death, all savings of up to €7,700 are doubled, so long as these savings were made before the member’s 55th birthday and the balance in the account never falls below this amount thereafter. 

If this maximum insurable amount is not saved before the member’s 55th birthday, then anything that is saved below this amount will be doubled and anything saved after age 55 (up to the max of €7,7000) will be at a reduced rate. Please note, any share withdrawal below €7,700 after the age of 55 will affect the amount of share insurance payable.

Share Insurance will reduce from a maximum €7,700 to a maximum of €3,000 as at March 1 st , 2019.

Why the changes in DBI and Share Insurance and why was I not allowed vote in this change?

The Board of Directors are responsible for making decisions to ensure the future sustainability of the Credit Union. The Board of Directors of every credit union are drawn from the members and elected by the members and as the elected representatives of your credit union, it is the responsibility of the Board of Directors to ensure that Savvi Credit Union can continue to operate and remain sustainable into the future for all members. Changes to the insurance cover are not required to be voted on by the members and while the Board recognise that this decision will not be popular, it needs to be made in the interests of the entire credit union.

Why was I not notified of this change earlier?

The annual report issued to members in December 2018 advised that a reduction in the death benefit insurance and share insurance was required. These changes were presented and discussed at the AGM in January 2019 for information purposes. The Credit Union must formally inform all
member’s 30 days before any change to insurances are affected.

The Insurance change will not come into effect until 1st March 2019.