Insurance at Larne Credit Union
Because your Credit Union was formed solely to help its members, it aims to offer fair and reasonable rates on savings and loans. But this isn’t the only advantage to saving and borrowing with your Credit Union.
Your Credit Union also offers all eligible members Life Savings Insurance and Loan Protection Insurance at no direct cost to you. The Insurance is underwritten by the Credit Union movements Insurance Company, ECCU Assurance Company Limited, and is paid for by Credit Unions from their surplus income. Members pay no individual charge.
Loan Protection Insurance
Loan Protection Insurance is the Insurance cover your Credit Union provides on the lives of eligible members with Credit Union loans.
What are the benefits?
Should a member with an outstanding loan die, the loan balance will be repaid in full by our Insurance Company. This means that you can borrow from your Credit Union with the full confidence that your dependants will not be obliged to repay the outstanding loan balance.
Loans are covered by insurance up to age 85, but members are advised to taper off their borrowing to enable their loan to be cleared at or before 85 years of age. Loans above age 85 must be secured by the member’s shares/savings, so each member will act as guarantor for their own loan.
Life Savings Insurance
This is a Life Insurance cover which your Credit Union provides to all eligible members as an additional incentive to save regularly and maintain savings with your Credit Union.
What are the Benefits?
Depending on your age and how much you have saved with Larne Credit Union over the years, Life Savings Insurance could provide your dependants with a substantial return on your death.
How does it work?
Every £1 saved by eligible members is covered by Life Insurance at no extra cost for each individual member! You are covered as long as you keep your shares in your Credit Union account.
Up to age 55———————————————- 100 %
If you save when over 70 years of age it adds to your security, however there is no additional insurance. For members entitled to share and loan insurance, the shares saved up to 70 years of age while left in the credit union provide cover to any age – even 100 plus!
Death Benefit Insurance
In addition to Loan Protection/Life Savings Insurance your Credit Union can offer members an additional Death Benefit Insurance designed to relieve the burden of bereavement costs. Life Insurance and Death Benefit Insurance will together provide added security for eligible members and relief from financial worry at the time of death of a member. The Board of Directors now offers this product through dividend deduction annually or where insufficient dividend exists, through payment and a signed form. Thereafter, sufficient shares should be kept in your account so that this premium may be deducted annually after agreement at the Annual General Meeting. Cover for a sum of £2500 is currently £21.81 for 12 months cover.
Members are eligible provided:
- A member joins the Credit Union before the age of 70 – cover will continue provided the premium is paid annually.
- A member must have been eligible for cover under the life savings contract i.e. fit to follow their normal occupation, and remained a member of the Credit Union.
- The member agrees to save regular amounts.
An eligible member who becomes ill does not lose benefit under this insurance.