# What is CU DBI? and how does Death Benefit Insurance work?



## newbie2009 (16 Dec 2011)

Hi all, 
Tried to Cut and paste a snapshot of my CU on line statement... didnt work..
Does any one know why Savings 90c, DBI 5.17 and Donation of 50c would have been debited from my account?

I seem to have rec'd shares of 3.87 also?

Thank you


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## Protocol (16 Dec 2011)

DBI = death benefit insurance

Donation = many CUs do this, a compulsory donation from all a/c.

It's probably voted on at the AGM.

You probably can get out of paying it.


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## newbie2009 (16 Dec 2011)

Cheers Protocol! 
What exactlyi s DBI? I dont have a loan with the CU, only savings?


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## ClubMan (16 Dec 2011)

Any use?

http://www.creditunion.ie/whatweoffer/insurance/deathbenefits/




> *Death Benefits*
> 
> *Death Benefit Insurance*
> 
> ...


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## Slim (19 Dec 2011)

newbie2009 said:


> Hi all,
> Tried to Cut and paste a snapshot of my CU on line statement... didnt work..
> Does any one know why Savings 90c, DBI 5.17 and Donation of 50c would have been debited from my account?
> 
> ...


 
Savings 90c would be premium for Loan & Savings Insurance scheme. This is the Irish League backed scheme (not government guarantee). Your loan would be cleared and your savings doubled(max) if you die.
DBI: as above explanation, about€1,300 upwards depending on CU, paid out as a cash payment on death to nominee.
Donation: Most likely the CU donation to Foreign Aid via the Irish League Foundation programme to fund schemes in 6 countries, most in Africa.

Many CUs charge these direct to the expense account, others debit individual members' accounts.


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## ontour (19 Dec 2011)

Slim said:


> Many CUs charge these direct to the expense account, others debit individual members' accounts.



That is very interesting.  Does that mean that comparisons of dividends are not 'like for like' as some include all those charges and others exclude them.  By charging these to the customer accounts, a better headline dividend can be provided.


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## ClubMan (19 Dec 2011)

ontour said:


> That is very interesting.  Does that mean that comparisons of dividends are not 'like for like' as some include all those charges and others exclude them.  By charging these to the customer accounts, a better headline dividend can be provided.


And then there are also _CUs _who post facto refund some of the interest paid by borrowing members on loans. However I'm not sure how meaningful it is to compare _CUs _given that one generally only qualifies for membership (i.e. falls within the common bond) of one or maybe two?


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## Slim (19 Dec 2011)

ClubMan said:


> And then there are also _CUs _who post facto refund some of the interest paid by borrowing members on loans. However I'm not sure how meaningful it is to compare _CUs _given that one generally only qualifies for membership (i.e. falls within the common bond) of one or maybe two?


I understand what you are saying but many people qualify for membership of two or more CUs, i.e. where they grew up, where they live now, a work CU or because they have moved around a bit.

In relation to the charging to members' accounts, the total amount would not be too significant, in itself, in terms of the CU's overall surplus/lask of surplus. The surplus could be a million but statutory reserves and bad debt provisions would use up most of that. Every little bit helps I suppose!


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