LP/LS Insurance & Nominations

Introducing Loan Protection & Life Savings Insurance

Because your credit union was formed solely to help its members, it aims to offer fair and reasonable rates on savings and loans.  But this isn’t the only advantage of saving and borrowing with your credit union.  Your credit union also offers all eligible members Live Savings Insurance and Loan Protection Insurance at no direct cost.

Loan Protection Insurance;

Loan Protection Insurance is provided by your credit union for you, the member, at no extra cost. This means that in the event of death, the insurance cover provides that the loan 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 credit agreement when the loan is granted.
  • Are actually at work (or physically capable of carrying out the normal work duties)
  • If not working are in good health.

In the case of joint accounts both parties are insured.

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 Wicklow and District Credit Union Ltd provides for its eligible members (free of charge). The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has and benefits are payable only on the death of a member (some terms and conditions apply).

Savings Cover Limit 

All Wicklow and District Credit Union’s Ltd. member shares are insured up to a maximum of €12,700.

Table of Benefits 

Age Limits % of savings covered  
Up to age 55 100% 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 €12,700
Age 55-60 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 €12,700
Age 60-65 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 €12,700
Age 65-70 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 €12,700

Effect of Withdrawals

  • Withdrawals have a negative impact on Life Saving Benefit as the claim is based on lowest share amount after the age of 55.
  • Amounts lodged after age 70 are not insured however withdrawals can effect benefits due.

 

NOMINATING YOUR NEXT OF KIN

On joining the Credit Union you are asked to complete a Form of Nomination, nominations allow members to specify a person or persons to whom they wish their assets in the Credit Union be left to in the event of their death.

Consider the following when completing your Nomination Form

  • Joint Account Holders need not nominate as the monies in the account automatically become the property of the surviving joint account holder
  • The Nomination is only valid up to a limit of €23,000, anything over that amount must go to form part of the individual’s estate.
  • A member can at any time change their nomination by simply completing a new form and returning it to the credit union during their lifetime, any previous nomination is then automatically revoked.
  • A members will or codicil to their will has no bearing on the nomination form up to the limit of €23,000.00
  • If the person nominated dies before the nominator the nomination is automatically revoked and the nominator must complete a new nomination form or the monies go directly to the estate of the deceased member.

When should I update the Nomination (Beneficiary) on my Account?

Have you recently – Reached the age of 16? Married? Divorced/Separated? Had a Baby? Had a death in the Family?

If you answer yes to any of these questions, it’s time to update your Nomination Form.  Making sure your Nomination Form is up to date couldn’t be easier and you should do this on a regular basis.  Simply ask any member of staff to check whom you have nominated as beneficiary on your account.  If you would like to change the nominated beneficiary then simply fill out a new Form of Nomination and leave the rest to us.

It is each member’s personal responsibility to ensure that their nomination is current and we would encourage all members to ensure they have an up to date nomination form on file.

A change in family status doesn’t automatically change a previous Nomination Form (Beneficiary); a benefactor on an old form could still receive the benefits you designated.

If no nomination is made or if the nomination becomes invalid, then the credit union account forms part of the deceased’s estate.

 

 A Member Nomination’s Leaflet which provides additional information is available at the counter in the credit union.

Please pick one up or ask any member of staff for assistance.