Credit union savings, life assurance and funeral paid for.

[Sue Ellen]

A few thoughts going through my head on credit union savings and the plus and minus options on it.

I understand that any of the credit unions associated with the Irish League of credit unions cover savings with the equivalent payment again on death i.e. if you have €20,000 in savings your family would get the same amount again on your death. Your funeral would also be paid for to the extent of €2,600 (I understand).

This seems like a good form of what could be called life assurance on death and the funeral fee is good also.

The downside to this line of thinking is that their interest rates are dreadful. In light of this are they definitely not worth considering investing with despite this extra cover.

Any views?

 

[Natrium]

In my Credit Union,. On the death of a member, shares are doubled up to a maximum of E8,000.
A sliding scale applies to savings lodged after age 55.

Age under 55..............100%
55 - 60.......................75%
60 - 65.......................50%
65 - 70.......................25%

I hope this may be of some help, but other Credit Unions may be different.

I would also be interested in more information, as I also thought it was 100% of all savings

Natrium

 

[oldtimer]

This is a topic which keeps coming up regarding credit unions i.e. 'savings will double on death.' This is far from true, see the sliding scale for qualification. The amount payable is based on what is on deposit at age 55. And then there is a maximum what will be paid out. The view held by many is, say, €20,000 is in savings, €40,000 will be paid on death. Totally untrue. Ask at your local credit union for the full terms and conditions and do not be fooled by this ''savings will double.'' Regarding the funeral expenses, this may vary with credit unions but as far as I know funeral expenses up to €1,300 will be paid to members who have joined before age 70.

 

[dafmurray]

Yes, check with Credit Union. My understanding was that the 'rule of thumb' is that an amount equal to the members shares (up to strick maximum of Euro 12,700 and subject to the age sliding scale in a previous post)is paid upon death of a member. Not sure about a funeral grant - this may be at discretion of the specific union.