Insurance

Loan Protection Insurance is the insurance cover the Credit Union provides on the lives of its borrowing members.

Should an insured borrower die, or (under most contracts) become totally and permanently disabled for any occupation, the insurance cover provides that the loan is repaid in full. If a member who is eligible for insurance cover and has signed the Credit Agreement, dies with a loan outstanding, the loan balance is paid in full by the insurer.

You will be informed at the time of the loan application if your loan exceeds the amount covered by the Credit Unions policy. Under the basic policy death cover ceases on the members 70th birthday, however our loan protection insurance extends to the members 85th birthday.

Disability Benefit

The maximum loan cover for disability is £40k. This protection ceases on the eligible members 60th birthday.

Life Savings Insurance is the life insurance cover the Credit Union provides for its eligible members as an additional incentive for them to save regularly. The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has, and depends on the member's age at date of lodgement.

Subject to a maximum benefit set by the Credit Union, every £1 you save before the age of 55 provides £1 of insurance. Once you are over the age of 55 each £1 you save with your credit union provides the following benefit:

• £1 saved between ages 55-59 provides £0.75 insurance
• £1 saved between ages 60-64 provides £0.50 insurance
• £1 saved between ages 65-69 provides £0.25 insurance

No insurance is payable on amounts saved after your 70th Birthday.

Once earned, your insurance remains in force as long as you leave your savings in your credit union. Withdrawals may affect the amount payable.

A member is eligible for the insurance cover carried by the credit union if when they begin saving they are:

• Under the age of 70
• Actively at work, or if not working, in good health

What are the benefits?

Depending on your age and how much you have saved with your credit union over the years, Life Savings insurance could provide your dependants with up to £12,700 on you death.

All eligible members of the Credit Union qualify under our Death Benefit Insurance Policy. This means in the event of your death, a lump sum of £2,000 will be paid to your family to help with the cost of funeral expenses, thereby easing the financial burden of bereavement. This is provided at no direct cost to the member.

Nobody enjoys talking or even thinking about their own mortality. However the simple fact is funerals are now extremely expensive and very few people realize the impact funeral bills will have on their lives. In recent years the average cost of a funeral has increased from £250 to over £3000. Death Benefit Insurance won’t ease bereavement but it will go a long way towards easing the financial burden your death may place upon your family.

To qualify for death benefit insurance you must be a Credit Union member with a minimum balance of £30 in your share account and must have joined the Credit Union before your 70th birthday.