Some of the major challenges facing Credit Unions today are the rising cost of doing business, making Credit Unions more attractive to new members and the ever present problem of growing lending. Coupled with these is the new challenge to Credit Unions, which has come through mergers, of finding a solution to the problem of continuing member’s benefits where these benefits were inherited due to a merger and were not part of the previous member benefit structures, particularly Death Benefit Programs.
CUNA Mutual is supporting Credit Unions that have the challenge of continuing members Death Benefit through an optional member pay Death Benefit Program that allows members to get additional end of life cover that they want, which they may have had with their previous Credit Union.
Cuna Mutuals Member Death Benefit Insurance (MDBI) is designed to remove the cost of existing programs from the Credit Union balance sheet and allow the members to pay for the insurance they need in a compliant, reasonably priced and transparent program.
Member Death Benefit Insurance (MDBI) provides the solution for Credit Unions to address the protection needs identified by Members and DBI Programs inherited by the Credit Union as the result of a merger. Many Credit Unions have stopped offering DBI due to the increasing costs of doing so, but need to find the solution to continuing to offer a death benefit program to new and sometimes existing members.
The MDBI program is not limited to Credit Unions who have gone through a merger but also made available to those Credit Unions who wish to put in place a new DBI program or reinstate a DBI program for members.
The MDBI program is arranged by the Credit Union, through the insurance intermediary CUNA Mutual Group Services (Ireland) Limited and underwritten by Covéa Life Limited in the UK, the insurer.
Members are not buying an insurance policy. The Policy holder is actually the Credit Union and by being a member of the Credit Union, eligible members can join the MDBI program.
What is Member Death Benefit Insurance?
Member Death Benefit Insurance program provides life assurance cover, (e.g. €2,500) to each member who opts to join the program and pays the full cost of his or her cover to the Credit Union. This cover can help pay towards funeral expenses, any outstanding debts or to leave as a legacy, following the death of the member while they are enrolled in the program.
Who will receive the death benefit?
Where the insurer admits a death claim on the program, the death benefit will be paid by the insurer to the Credit Union, for payment into the deceased program member’s Share Account.
Significant Features & Benefits
- Guaranteed acceptance without medical – provided they are a member of the Credit Union, joined before their 71st birthday, is or was a member of the Credit Union’s Life Savings Insurance scheme, opted to join the program before the start date of the program and are a resident in the permitted Geographical Area.
- Life cover – the fixed sum is payable on the death of a member covered by the program at the date of his or her death, where the cause of death is not excluded under the conditions stated in policy.
Currently, the MDBI Program is only available to Credit Unions in the Republic of Ireland.
For more detail on the MDBI program please consult the key facts or call CUNA Mutual on 00 353 (1) 5533500 or e-mail: insurance@cunamutual.ie