Credit unions exist to serve their members, not to profit from their needs. As member-owned, community-based financial cooperatives, credit unions are guided by the principles of mutual help, financial wellbeing and social responsibility. Life Savings cover reflects this ethos. It is a tangible demonstration of a credit union's commitment to the lifelong financial security and welfare of its members and a key part of the ‘credit union difference’.

When a member (over 16 years of age) first joins their credit union, they will complete a nomination form. This enables a member to nominate or name someone to receive the savings in their account, upon their death.

When an eligible member passes away, the Life Savings benefit is calculated. It is based on a member’s savings balance, the age of the member and the maximum Life Savings limit arranged by the credit union. There are a range of life savings cover limits available, and your credit union will select one. To find the limit operated by your credit union, check their website or phone the credit union and enquire.

The deceased member savings plus any life savings benefit payable are paid to the person named on the nomination form (subject to certain limits) or to the deceased person’s estate. You can update your nomination form, from time to time. Simply contact your credit union and they will help you.  

No. As a member you will be eligible for life savings cover if:

• You remain a fully paid-up member of your credit union, maintaining the minimum share amount in your account. In many credit unions this is just £5/€6.35. (check with your credit union) and,

• Savings must be lodged to your account before the age of 70 and,

• Savings must be lodged when you we’re actively at work and regularly performing all the usual duties of your occupation or lodged when you we’re in good health.

No. Life savings cover is provided by credit unions to their members at no direct cost. It’s just another great benefit of being a credit union member.

If a member has a valid nomination form, the funds can be paid out to the nominee (the person listed on the nomination form), subject to certain limits which apply.

If the member does not have a valid nomination form, the life savings cover will become part of the deceased person’s estate and will pass through the intestacy process.

There are a range of life savings cover limits available to your credit union e.g. €3,000/£2,000 is one of those limits.  Subject to the maximum life savings cover limit set by your credit union, every €1/£ saved before the age of 55 provides €1/£1 of insurance coverage. Once over the age of 55, every €1/£ saved with the credit union will reduce depending on your age.  See this set out below:

• €1/ £1 saved between ages 6 months and 54 provides €1/£1 insurance cover

• €1/ £1 saved between ages 55-59 provides 75 cents/pence insurance cover

• €1/ £1 saved between ages 60-64 provides 50 cents/pence insurance cover

• €1/ £1 saved between ages 65-69 provides 25 cents/pence insurance cover

Savings lodged after the age of 70 does not benefit from any insurance cover. Also note that any withdrawals of savings after age 55 can reduce the life savings benefit.

The calculation of the Life Savings benefit is based on a member’s savings balance, the age of the member and the maximum Life Savings limit arranged by your credit union.

The scenarios below outline an example.

Scenario:  John dies at age 64

John joined his credit union at age 25 but died at age 64 with €10,000 saved in his account. He nominated his savings account to be left to Carmel his wife on his death. As the CU was affiliated to the Irish League of Credit Unions, it provided the Life Savings cover service to its members at a cover limit of €3,000.  Carmel received back John’s savings of €10,000 on his death, plus the additional Life Savings cover payment of €1,500.  In total €11,500 could then be paid out under the credit unions nomination process without Carmel having to wait months to complete the intestacy process.

All credit unions affiliated to the Irish League of Credit Unions take out an insurance policy on behalf of their members with ECCU Assurance DAC. ECCU is the credit unions’ own not for profit insurance company.

More than three million credit union members across the island of Ireland are protected through the ECCU policies held by credit unions for the benefit of their members.

Once earned, the life savings insurance remains in place as long as the member keeps their savings in the credit union (and the credit union continues to offer the service). It is important to remember that share withdrawals may affect the amount of Life Savings benefit payable.

Both the Life Savings cover and Death Benefit cover pay a benefit on the death of an eligible member.  The key difference is the Life Savings cover amount needs to be calculated whereas the Death Benefit cover amount is always for a fixed amount e.g. €1,000.