Page 56 - Kildare CU 2022 AR

IMPORTANT INFORMATION TO NOTE
SAVINGS AND LOAN INSURANCES
Life Savings Insurance is the life insurance cover Kildare Credit Union Ltd provides for eligible members as an additional incentive for regular saving. The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has at date of death and depends on the member’s age at date of lodgement.
All savings lodged before age 55 are eligible for 100% insurance after death, up to a limit of €12,700. Once over the age of 55 each €1 saved with Kildare Credit Union Ltd provides the following benefit:
• €1 saved between ages 55-59 provides €0.75 insurance
• €1 saved between ages 60-64 provides €0.50 insurance
• €1 saved between ages 65-69 provides €0.25 insurance
• No insurance is payable on amounts saved after your 70th birthday.
Your insurance remains in force as long as you leave your savings in Kildare Credit Union Ltd.
All loans with Kildare Credit Union Ltd are automatically covered by Loan Protection Insurance at no additional cost. Loans outstanding at the time of death are cleared providing the deceased met eligibility conditions when the loan was granted.
Example: If a member dies at age of 72 and no withdrawals were made from shares after age 55 and balance at age 55 is €3,000; balance at age 60 is €3,800; balance at age 65 is €4,400; Balance at age 70 is €5,200 and the balance is €5,600 at date of death, the calculations are as follows:
AGE
BALANCE
CALCULATIONS
RATE
BENEFIT
55
€3,000
Share balance on 55th birthday or lowest balance thereafter
€3,000 @100%
€3,000
60
€3,800
Share balance on 60th birthday or lowest balance thereafter
€3,800 less €3,000 @75%
€600
65
€4,400
Share balance on 65th birthday or lowest balance thereafter
€4,400 less €3,800 @50%
€300
70
€5,200
Share balance on 70th birthday or lowest balance thereafter
€5,200 less €4,400 @25%
€200
TOTAL
€4,100
Total shares at time of death €5,600 + Life Savings benefit of €4,100 equals €9,700 due to nominee.
Withdrawals after the age of 55 would affect the above calculation.
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