Insurance Cover

 

Loan protection cover

Credit union loans to members are covered by our policy with CUNA Mutual Insurance Society at no additional cost to members. The cover ensures that if a member dies during the term of the loan and their age at death is 69 or under, the amount still owing at the time of death will be paid off by CUNA Mutual up to a value of £5,000.

This means that if a member aged 70 or over wishes to apply for a loan, we will accept an application for a secured loan.

Savings protection cover

Member savings in the credit union are also covered by the policy with CUNA Mutual Insurance Society. Payments will be made directly to the beneficiary named in the member’s account.

If a member dies before the age of 65, the first £5,000 of their savings will be doubled. If a member dies between the ages of 65 – 79, then 25% of the first £5,000 will be paid out alongside the closing balance on savings.

This insurance cover has the following conditions and restrictions:

Loan cover

  • Cover is up to 69 years at the age of death.
  • The maximum claim limit is £5,000.
  • Payment will not be made if death occurs within the first 6 months of the term of the loan and results from an illness or injury for which a member received medical advice, consultation or treatment within  6 month period prior to taking out the loan.

For example – if a member took a loan out on 1st January 2017 and had been receiving treatment for an illness diagnosed in August 2016 and then died as a result of this illness in May 2017, the member’s loan would not be covered by the policy.

Savings cover

  • Cover is up to 79 years at age of death.
  • The maximum claim limit is £5,000.

Payment will not be made if death results from an illness or injury for which a member received medical advice, consultation or treatment within the 6 month period prior to their death.