Free Insurance on Savings and Loans
One of the unique benefits of credit union membership is the fact that your Savings and Loans are covered by free life cover (Subject to terms and conditions – see below). All members who qualify for insurance are included for coverage automatically, you do not need to sign up for insurance to start.
Free Life Savings Cover
What is Covered?
The level of that protection is subject to your age when you deposited your shares and is proportionate to the amount saved. It does not decrease as you grow older provided that the deposit remains in the your’s savings account.
Savings insurance will cover 100% of your savings amount to the age of 65 and up to a maximum of £5,000, meaning that should you die under the age of 65 we will match this amount of your savings and pay it to your chosen beneficiary. Between ages 65 and 80, we will match 25% of your new savings deposits while still protecting 100% of any deposits made before the age of 65 and not withdrawn.
Withdrawal of Your Savings
If you withdraw your shares, for insurances purposes these are assumed to carry the maximum insurance cover. For example a member joins at the age of 50 and saves £500. If that member withdraws say £250 in shares when s/he is 66, it is assumed that the shares withdrawn are those deposited before the age of 64 and the member will lose £250 insurance cover.
Free Loan Protection
We provide free life insurance on your credit union loan, . This means that in the event of your death your credit union loan balance is paid off by this insurance so you needn’t worry about passing on debt to your next of kin when you die.
This benefit fulfils one of the credit union movement’s principles of ensuring that the member’s debt dies with them. It is a benefit to credit union members and would cost extra money with most other institutions.
What Does Loan Protection Cover?
Loan Protection insurance automatically covers 100% of credit union loans held by members aged between 18 and 79, to a maximum value of £15,000.
When does Loan Protection Not Apply?
Any new loan agreements are subject to a six month Pre-existing Condition Limitation. This means that should you die as a result of a pre-existing medical condition (for which medical advice, consultation or treatment was received), within 6 months of taking out your loan, Loan Protection insurance will not be applied.
You do not qualify for insurance on your loan if it was made on or after your 80th birthday. If your loan was made before the age of 80 your insurance will also stop when you reach your 80th birthday.
Terms and Conditions
Pre-Existing Condition Limitation (PCL)
Both the Savings and Loans insurance contracts carry a 6 months pre-existing condition limitation (PCL) as standard.
The insurance will not pay benefit on a member’s outstanding share balance or loan agreement if death results from a pre-existing illness or injury for which medical advice; consultation or treatment was received within 6 months prior to making the share deposit or taking out the loan agreement.
This PCL lasts for a period of 6 months from the start date of each share deposit or loan agreement. If a member dies 6 months or more after the date of the share deposit or commencement of the loan agreement this rule will not be applied.
Insurance benefits under this cover may not be payable if you are injured, become ill or die resulting from an insurrection of any act of war, declared or undeclared, or service in the armed forces of any country.
Benefits under this policy are not payable with respect to any deposit into your savings account if you commit suicide, while sane or insane, within six (6) months from the date of the deposit.
Benefits under this policy are not payable with respect to any savings disbursed to your share account on, or subsequent to the effective date of this policy if your death results directly or indirectly from Human Immunodeficiency Virus (herein HIV) or Acquired Immune Deficiency Syndrome (herein AIDS) or where HIV/AIDS is a major contributing cause of death. The Pre-Existing Condition Limitation shall not apply to this HIV/AIDS Exclusion. Exemptions to the HIV/AIDS exclusion are as follows:
- Contraction of HIV/AIDS “in the line of duty” or as part of one’s legal profession (e.g. medical personnel/EMTs; police/safety work)
- Contraction of the virus as a result of being the victim of a crime
- Contraction of the virus through a blood transfusion or legal medical procedure administered by a medical professional in a medical facility
Proof of Death
Proof of death must be submitted to us within two (2) months of the occurrence of death. If notice and/or proof cannot reasonably be given within the period the claim will not be invalidated if it is shown to have not been reasonably possible to give notice and/or proof, prior to the date it is first presented.
Release of Medical Information
As part of the claim procedure your beneficiary may be asked for consent to seek medical proof from your doctor relating to your claim.