Member Death Benefit Scheme
For you and your loved ones
We offer free life insurance on your savings and on your loan. The amount covered depends on your age when you put money into the credit union. Savings insurance has been designed to make the lives of families and next of kin easier in the event of death. A lump sum on bereavement can help towards funeral costs or could be left as a legacy for a loved one. Your loan balance could be paid off, so you needn’t worry about passing on debt to your Beneficiary (Terms & conditions apply). This benefit aims to fulfil one of the credit union movement’s principles by ensuring that the member’s debt dies with them. It is a unique benefit for our members, for which other financial service providers would charge you extra.
- No direct cost
- Peace of mind for your next of kin
- Savings deposited up until the age of 64 are insured at 100%
- Savings deposited between 65 to 79 are insured at 25%
- Any loan you have will also be insured (T&C applies)
How does it work?
Life cover protects and adds to your savings in case of death and repays your loan if you die before you have paid it off (Terms and Conditions apply).
The amount covered depends on your age when you put money into the credit union. There are no additional forms to fill in to qualify for this Free benefit.
The insurance is paid on your shareholding at 100% of the amount saved between the ages of 18 and 64, and at 25% of the amount saved between the ages of 65-79.
Please Note: There is no insurance on money saved under the age of 18 or over the age of 80. The maximum cover is £5,000.
Examples;
John is under 65 when he saves £2,000 and is over 65 when he dies. The insurance company could pay out £2,000: plus his £2,000 savings his beneficiary could receive £4,000 to help.
Emily is over 64 when she saves £2,000. Upon her death, the insurance company could pay out £500: plus the original £2,000, the amount Emily’s beneficiary could receive has been increased by 25% to £2,500.
FAQs
If you have a question that is not answered here, please contact us and we will be happy to help.
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– In the event of the member’s death;
– Where the member was aged between 18 and 70 at the time of death; and
– When loan repayments were being made regularly on time up to the time of death.
Once the claim has been approved we require a beneficiary to complete an Indemnity Form to certify that they are entitled to the funds, which are released in full and final settlement of the member’s property in the credit union.
If the funds in the deceased member’s account(s) exceed the amount of £5,000 any excess will be paid to the deceased member’s estate in accordance with Grant of Probate or Letter of Administration.
If beneficiary details have not previously been provided by the deceased member, the funds will be distributed according to current Testacy Law.
If you can’t find the answer here, please get in touch and we’ll be happy to help
