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Loan Protection and Life Savings benefits
All membersí loans and savings are insured at no direct cost to the member
This is called Loan Protection and Life Savings insurance (LP/LS)
When you join the Credit Union you fill in a Nomination form, which tells us who you have chosen to be your beneficiary. It does not have to be your next of kin and can be more than one person. It can be changed at any time.
Life Savings cover
In the event of your death or total and permanent disability, deposits made before your 65th birthday will get 100% cover. Anything deposited between the ages of 65 and 80 will get 25%.
|Savings (Shares)||Insurance||To next of kin|
|Deposited up to age 65 - £1,000||100% = £1,000||£2,000|
|Deposited after age 65 - £500||25% = £125||£625|
|Total savings - £1,500||Total Insurance - £1,125||Total paid out - £2 ,625|
The amount of insurance depends upon your age when your savings were put in the credit union, not upon the age you are when you die, providing they have been left in the credit union during that time.
In addition your dependants will also receive Accidental Death and Dismemberment Cover. This pays up to an additional 100% of the value of your shares in the event of your death caused by an accident prior to age 65.
Loan Protection Insurance
All members under the age of 70 years have FREE loan protection.
In the event of your death, any outstanding loan would be paid off in full.**(Maximum £5000)
However, there is a 6 months Pre-existing Condition Limitation.
This means that if someone dies within 6 months of taking out the loan, of a condition that they already knew about, the loan would not be covered.
If a member dies within 6 months of taking out a loan, unexpectedly, or from something they did not know about, then the loan would be paid off in full.