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DEATH BENEFIT INDEMNITY

An extra layer of protection for your members - at no cost to them.

Death Benefit Indemnity (DBI) is a discretionary benefit that provides a fixed lump-sum payment to the family of a credit union member upon their death - at no additional cost to the member. It is designed to complement existing Life Savings Protection arrangements, giving members an extra layer of financial support for end-of-life expenses. For credit unions, DBI is a straightforward way to strengthen the member value proposition without adding complexity to your operations.

Who is this product for?

DBI is designed for Irish credit unions that wish to offer their members an additional death benefit alongside their existing Life Savings Protection programme. The credit union is the group policyholder; members are covered automatically by virtue of their membership. The benefit is offered at no direct cost to members and requires no medical examination or questionnaire.

What does this product cover?

  • A fixed lump-sum death benefit paid to the member’s estate or nominated beneficiary on death

  • Covers both natural and accidental death

  • No cost to the member - the benefit is provided as part of credit union membership

  • No medical examinations or questionnaires required - all eligible members qualify automatically

  • Fixed benefit amount predetermined by the credit union - independent of the member’s savings or loan balance

  • Complements any existing Life Savings Protection benefit, providing an additional layer of support for families

What is not covered?

As with all insurance products, exclusions and conditions apply. Key exclusions include:

  • Members who joined the credit union after their 71st birthday

  • Members who do not maintain the minimum share balance required under the policy terms (where applicable - please check with your credit union)

  • Deaths arising from pre-existing conditions during the first 6 months of membership in the programme - a 6-month pre-existing condition exclusion applies to new members

  • Deaths resulting from criminal activity in which the member was actively participating at the time of death

  • Full terms and conditions are set out in the policy documentation provided at quotation stage

How does it work?

DBI operates as a group benefit administered by the credit union. Eligible members are covered automatically as part of their membership - there is no individual application process. The credit union determines the fixed benefit amount and manages the programme in line with its own membership and financial policy. In the event of a member’s death, the credit union submits a claim on behalf of the member’s estate, and the fixed benefit is paid to the estate to assist with end-of-life costs.

Important: Discretionary nature of this benefit

Death Benefit Indemnity is a discretionary benefit. The Board of the credit union reserves the right to modify or terminate the benefit at any time. Notice of any alteration or termination will be made publicly available on the credit union’s website. Members may not be written to individually in the event of a change to this programme. CMutual recommends that credit unions ensure members are aware of the discretionary nature of the benefit at the point of enrolment.

Who underwrites this product?

Death Benefit Indemnity is currently underwritten by Aviva Life and Pensions Ireland DAC. Claims on policies incepted under previous arrangements may continue to be processed under Utmost PanEurope DAC cover for a transitional period. The applicable arrangement applicable to your credit union’s group policy will be confirmed in your policy schedule.

How are we paid?

CMutual earns commission and/or administration fees for arranging and managing your insurance, included within the premium. Full details of our remuneration are available in our Terms of Business

Get in touch

To find out more or to request a quotation, contact our team:

 

CMutual arranges insurance on a limited analysis of the market basis. We work with a defined panel of underwriters and do not compare all products available in the wider market. No cover is in place until a policy schedule has been issued to you in writing. Full details are in our Terms of Business.

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